iShares, the world’s leading Exchange Traded Fund (ETF) provider, has announced the launch of a series of ETFs providing the world’s first entry to the mainland Chinese market through this product category. To date, only Qualified Foreign Institutional Investors (QFIIs) or Mainland China residents can invest directly in the China A-Share market.
The new iShares products, based on the reputable CSI indexes, enable investors to gain broader access to large and mid-cap China A-Shares, companies incorporated in mainland China and are traded in the mainland A-share markets. The products began trading at the end of 2009 and immediately broke turnover records in their first day of trading.
“We are pleased to provide local investors with an exchange traded fund that provides more direct access to this market for the first time in history,” said Robert Broadwell, Regional Business Director, iShares.
“The last decade has seen a tremendous growth in trade relations between the GCC and China, with the Sino-Gulf trading volumes exceeding even those between the GCC and the United States. We feel that these ETFs provide local investors with a natural fit for their current portfolio needs,” continued Broadwell.
The ETFs launched provide sector specific as well as general exposure to this robust market where access has traditionally been difficult. The ETFs launched include:
• iShares CSI A-Share Energy Index ETF (“ISHARES A ENRG”, stock code: 3050)
• iShares CSI A-Share Financials Index ETF (“ISHARES A FIN”, stock code: 2829)
• iShares CSI A-Share Infrastructure Index ETF (“ISHARES A INFRA”, stock code: 3006)
• iShares CSI A-Share Materials Index ETF (“ISHARES A MAT”, stock code: 3039)
• iShares CSI 300 A-Share Index ETF ( “ISHARES A 300”, stock code:: 2846)
Sector ETFS offer unique solutions for investors who want targeted industry exposure without the risks of single stock concentrations. With the launch of the iShares China A-Share Sector ETF Series, investors can, for the first-time, pursue China sector strategies while realizing the unique benefits of iShares ETF investing including liquidity, transparency, cost-effectiveness, and trading flexibility.
The iShares China A-Share Sector ETF Series aims to provide cost-efficient market access to investors seeking diversified exposure to particular sectors of the Chinese economy. The products can serve as liquid and transparent vehicles for investors looking to express a specific, targeted view on the China market.
