Deutsche Bank’s exchange traded fund platform, db X-trackers, has listed a new ETF, CSI3000 Index ETF on the London Stock Exchange which tracks 300 China A-Shares.
A-shares are stocks quoted in renminbi and listed on the Shanghai and Shenzhen stock exchanges, and have been hard for overseas investors to access in the past. A-shares cover 75% of the Chinese market capitalisation, or more than 2,000 companies across all sectors of the China economy. Manooj Mistry, head of db X-trackers for the UK, said: “The China Securities Regulatory Commission is expanding its quotas for foreign investment, signaling willingness by the Chinese government to open up China’s capital markets further to international investors. But for many investors it remains a difficult market to access. The db x-trackers CSI300 Index ETF can bridge that gap.”
According to ETF provider Source, investors put over $2.6 billion into European exchange traded products (ETPs) in June 2012, with $8.3 billion being invested in ETPs in the first six months of 2012 overall. Volatility ETPs attracted investor assets in this period, with over $900 million in new asset inflows. Source said that investors were starting to reposition for a “risk on” environment by adding beta to their portfolios.