DOMESTIC asset management firm E Fund Management (Hong Kong) has tied up with London-based ETF Securities to launch an exchange traded fund (ETF) to list on three European exchanges.

    The ETF allows European investors to access China’s market while being another incremental step to expanding the yuan’s global footprint.

    Tracking the MSCI China A Index and with a quota of 2 billion yuan (US$320.9 million), the ETF will be listed on the London Stock Exchange, Deutsche Boerse and NYSE Euronext Amsterdam. It is the first such fund to list on three European stock exchanges simultaneously under the Renminbi Qualified Foreign Institutional Investor (RQFII) program.

    The RQFII program, launched in 2011, allows financial institutions to use offshore yuan to invest in the Chinese mainland’s securities markets, including in stocks, bonds and money market instruments.

    “Last month when we did roadshows in Europe, we found that many investors there were looking for opportunities in China,” said Tseng Ko, managing director at E Fund Management (Hong Kong).

    “European investors held a positive attitude on China’s market reform and opening up, though they also had concerns on issues like credit default and the export slowdown,” Tseng said, adding the company planned to list this ETF in more countries. (SD-Agencies)