The physically-replicated ETF tracks the MSCI China A index of approximately 460 companies listed in Renminbi on the Shanghai and Shenzhen markets, Lyxor said, and has a total expense ratio of 0.85%.
The fund will be managed by the Hong Kong subsidiary of Fortune SG, Lyxor’s Chinese joint venture, which Lyxor says already manages “the largest European ETF with exposure to Chinese companies (via issuers listed in Hong Kong), with over US$1 billion of assets under management”.
Arnaud Llinas, global head of ETFs and indexing at Lyxor, said: “Despite representing approximately 75% of China’s total market equity capitalisation, A-Shares have historically been underrepresented in investment portfolios. This is beginning to change, with regulatory reforms and other initiatives beginning to trigger greater investor interest in the A-Shares market. We therefore believe the launch of this product is extremely timely and will help provide UK retail investors with exposure to an important market via a flexible and diversified vehicle.”