FTSE Group (“FTSE”), the global index provider, announces the licensing of the FTSE China A50 Index to CSOP Asset Management Limited (“CSOP”) as the basis of its first Renminbi Qualified Foreign Institutional Investors (RQFII) ETF, which lists on Hong Kong Exchanges and Clearing Limited (“HKEx”) today.
The CSOP FTSE China A50 ETF is the first cash based ETF based on the FTSE China A50 Index and offers investors the most direct channel to participate in the China Bluechip market. It marks a milestone in RQFII development, and underlines the credibility of the FTSE China A50 Index as a recognized standard route into the A-Share market. FTSE maintains its leadership position in China indices with over 60% of assets under management in China-themed ETFs listed globally benchmarked to the FTSE China Index Series.
Jessie Pak, Managing Director, Asia, FTSE Group said, “We are delighted to be working with CSOP Asset Management to play a pioneering role under the RQFII scheme and to further develop investment opportunities for the China market. With established agreements with Shanghai and Shenzhen Stock Exchanges, and a strong track record providing optimal China index solutions, the FTSE China Index Series has become the natural choice for ETF issuers globally who wish to create China-themed investment products.”
Ding Chen, CEO, CSOP, said, “We are delighted to choose the FTSE China A50 as the underlying index of the CSOP FTSE China A50 ETF; this is a decision made after repeated assessment and an in-depth market research, and is also a key to the success of our IPO. The FTSE China A50 Index not only enjoys a high awareness in the market, but is also associated with a range of related financial tools for investors to choose from, such as stock index futures and other financial derivatives. Thanks to the FTSE China A50 Index, our product is very representative of the A-share market with great tradability, covering a wide range of industries, such as financials, health care, and telecommunications. We are delighted but not surprised by the full subscription of the FTSE China A50 ETF in the primary market. The heated response from investors demonstrates that the CSOP FTSE China A50 ETF indeed has a unique attraction in terms of its index representativeness, liquidity and quality.”