FTSE Russell announced the licensing of the FTSE China A50 Index to Harvest Fund Management (HFM). The Harvest FTSE China A50 Index ETF, listed on Shanghai Stock Exchange (SSE) today and is the first domestically listed ETF to track a FTSE Russell index.
ETFs representing China A Shares offer market participants a channel to participate in the growing blue-chip market in China. With a strong track record in developing China market indexes, FTSE Russell China benchmarks are widely recognised by international investors and issuers globally as the leading measure of the China equity market and the natural choice for creating China-focused investment products. Globally, around $30 billion AUM is benchmarked to or tracking FTSE China Indexes.
Ms. Jessie Pak, Managing Director, Asia, FTSE Russell, said:
We are delighted to work with Harvest Fund Management to support the demand from end investors to capture investment opportunities in China. China continues to make good progress in opening its domestic A Shares market to international and regional investors. Our broad range of transparent benchmarking tools and indexes suitable for the creation of investment products help meet the needs of our international customers to track their investment performance and create investment products, such as ETFs.
Jing Lei, Managing Director, CIO of Institutional Investment and Fixed Income, Harvest Fund Management, commented:
China, as the second-largest economy of the world and the largest economy in emerging markets, is considered the most under-allocated market by international investors. With the opening up of the Chinese capital market, Harvest Fund Management believes that more global investors will increase their allocation in China A Shares. The FTSE China A50 Index, comprising the 50 largest and most representative blue-chip companies of China A Shares, is highly recognized by global institutional investors and high-net-worth individuals. We are delighted to become the first provider of a FTSE China A50 Index ETF in the domestic China market.