The ETF aims to offer the “broadest exposure to Chinese equities”
Invesco has launched a China all shares ETF, offering investors broad exposure to Chinese equities and a close representation of the nation’s economy.
The MSCI China All Shares Stock Connect UCITS ETF will be available for an ongoing charges figure of 0.35% and covers equities listed in Hong Kong, Shanghai, Shenzhen and outside of China.
The MSCI China equity universe has been adjusted to provide a full weighting of China A shares, available through Stock Connect, and all constituents are weighted by free-float-adjusted market capitalisation, rebalanced quarterly,
Gary Buxton, head of EMEA ETFs and indexed strategies at Invesco, said: “Despite China being one of the largest and fastest-growing economies in the world, its capital markets have always been difficult for international investors to access.
“There are many different types of share classes, some listed onshore and others offshore, and not all are available to everyone. The MSCI China All Shares Stock Connect Select index provides exposure to the broad opportunity set, and we are delighted to bring to market the first UCITS ETF tracking this important index.”
Chris Mellor, head of EMEA ETF equity and commodity product management at Invesco, added: “The Stock Connect programme went a long way to provide foreign investors access to the equities listed on China’s two largest stock exchanges.
“These companies have the greatest exposure to domestic growth, which we think could be attractive given urbanisation, a rising middle class and other demographic trends.
“By tracking this new index, our ETF provides full weight of these important stocks along with global growth opportunities from Chinese stocks listed offshore. We believe our ETF offers the broadest and truest representation of China’s vast economy.”