As one of the largest and fastest growing economies in the world, China continues to be a difficult market for foreign investors to access.
But with the launch of Invesco’s Chinese all share ETF, things are about to change.
Named the MSCI China All Shares Stock Connect UCITS ETF, it provides a unique investment opportunity, targeting the closest representation of the country’s economy.
Chris Mellor Head of EMEA ETF Equity and Commodity Product Management at Invesco, said, “We believe our ETF offers the broadest and truest representation of China’s vast economy.”
Commenting on the launch 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.”
Buxton continued, “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.”
The index covers China equities listed in Hong Kong, Shanghai, Shenzhen and outside of China. It adjusts the MSCI China equity universe to provide full weighting of the China A shares accessible through Stock Connect. All the index constituents are weighted by their free-float-adjusted market capitalisation, and the index rebalances quarterly.
Chris Mellor, gave a summary of Invesco’s approach, saying, “The Stock Connect programme went a long way to provide foreign investors access to the equities listed on China’s two largest stock exchanges.”
Mellor added, “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.”