New China ETF Designed to Profit From Hong Kong-Shanghai Gap
- CSOP fund picks cheaper stocks among dual-listed Chinese firms
- Arbitrage becomes difficult after China curbs shortselling
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The first Chinese asset manager to offer U.S. investors an exchange-traded fund tracking mainland equities has introduced a new ETF intended to profit from the almost 30 percent price difference between dual-listed stocks in Hong Kong and Shanghai.
CSOPAsset Management Ltd.’s China CSI 300 A-H Dynamic ETF picks the cheaper stocks from the group of companies that have listings both in Hong Kong and on the mainland. On average, the so-called A shares of dual-listed companies are trading at a more than 29 percent premium to their counterparts in the former British colony, according to data compiled by Bloomberg.