PRESS RELEASE
London, 23 May 2014: Source and Hong Kong-based CSOP Asset Management (“CSOP”) are pleased to announce the launch of a Euro trading line for the CSOP Source FTSE China A50 UCITS ETF, on Deutsche Börse Xetra. The ETF was the first in Europe to offer direct exposure to China A shares and has gathered assets of over US$360 MN since its launch in January 2014.
A shares are shares of Chinese companies, listed on mainland Chinese exchanges and denominated in Chinese renminbi (RMB). The market comprises around 1400 companies and is widely viewed as the most authentic Chinese equity market. It represents almost 4% of the global equity market but has been difficult to access, particularly for smaller investors.
The CSOP Source FTSE China A50 UCITS ETF invests directly in A shares under the Renminbi Qualified Foreign Institutional Investor (RQFII) quota scheme. Investors with RQFII status may, within their allocated quota, buy and sell A shares freely. Hong Kong-based CSOP is currently the largest RQFII manager of A shares globally and has been granted quota specifically for the CSOP Source FTSE China A50 UCITS ETF.
“There is clearly strong demand for Chinese equities across Europe,” says Chen Ding, CEO of CSOP. “We are delighted to offer this ETF in a format that is more accessible for Eurozone investors.”
“The CSOP Source FTSE China A50 UCITS ETF has been the largest ETF launch in Europe so far this year,” adds Source CEO Ted Hood. “It gives all investors – not just large institutions with their own investment quotas – direct access to one of the world’s most important equity markets.”.
The ETF is denominated in RMB and trades on Xetra in EUR. It also trades on the London Stock Exchange (USD and GBP) and SIX Swiss Exchange (USD). Investors will be exposed to fluctuations in the exchange rate between RMB and the currency in which they are trading.
1 - In USD terms, as at 30 April 2014.
Key product terms
| Reference Index | FTSE China A50 Index PR (Bloomberg: XIN9I <Index>) | |
| Trading | London Stock Exchange | Xetra |
| ISIN | IE00BGSHB123 | DE000A1XES83 |
| Base currency | RMB | |
| Trading currency | USD / GBP | EUR |
| Bloomberg code | CHNA LN / CHNP LN | SMLC GR |
| Reuters code | CHNA.L / CHNP.L | SMLC.DE |
| Manager | Source Investment Management Ltd | |
| Investment manager | CSOP Asset Management Limited | |
| Custodian | HSBC Institutional Trust Services (Ireland) Limited | |
| Global Custodian | Hong Kong Shanghai Banking Corporation Limited | |
| Sub-custodian | HSBC Bank (China) Company Limited | |
| Lead Counsel | Maples and Calder, Dublin | |
| Management fee | 0.99% | |
| TER | Up to 1.11% | |
| Dividend treatment | Reinvested quarterly | |
| UCITS compliant | Yes | |
| Domicile | Ireland |