HONG KONG Jan 28 Chinese asset management firm
CSOP said on Tuesday it was collaborating with London-based
Source to apply for an exchange-traded fund (ETF) in the United
States, following their first such product launch in London
earlier this month.
It will be the second ETF listed in the United States under
the Renminbi Qualified Foreign Institutional Investor (RQFII)
scheme, after Deutsche Asset & Wealth Management and Harvest
introduced a similar fund in December.
CSOP, the biggest RQFII asset manager with 34.1 billion yuan
($5.64 billion) of quotas, said in a statement the new ETF
product aimed to track the performance of the FTSE China A50
Index, which comprises the top 50 shares in mainland China.
Its London ETF was well received thanks to European
investors' confidence in China's economy and currency. The firm
has started to apply for new quotas for the fund as 97 percent
of the 1.5 billion yuan quota was used up just two weeks after
The RQFII scheme, launched in 2011, allows financial
institutions to use offshore yuan to invest in the Chinese
mainland's securities markets, including stocks, bonds, and
money market instruments.
As of Jan. 27, a total of 167.8 billion yuan in quotas had
been approved for 57 RQFII licences under the 270 billion yuan
quota granted to Hong Kong.
CSOP said earlier it also won approval to launch the first
Chinese government bond exchange-traded fund (ETF) under the
RQFII scheme. The fund will be listed and traded in the Hong
Kong Stock Exchange in early February.
Meng Xiaoning, fund manager of the bond ETF, expected
China's five-year treasury bond to carry a yield of around 4
percent in the first half of this year, and 3.8-4.1 percent for
the whole year.
The money manager, which managed $5.7 billion assets as of
end-2013, was granted a 4 billion yuan RQFII quota by the State
Administration of Foreign Exchange (SAFE) in January.