Latest listing further demonstrates Euroclear’s ability to offer international investors access to RMB ETF products
Brussels/London/Hong Kong, 12 January 2017 – Euroclear Bank, the Brussels-based international central securities depository (ICSD), and GF International Asset Management (GF International), the UK subsidiary of the Chinese asset manager GF Fund Management, are collaborating on issuing an international exchange traded fund (ETF): the GF International-FTSE China A UCITS ETF.
The ETF, which uses Euroclear’s international issuance structure, is domiciled within the Luxembourg jurisdiction; listed and traded in USD on the London Stock Exchange. It is settled directly in the ICSD – Euroclear Bank. The ICSD structure will also allow GF International the flexibility to clear and settle in Renminbi, for any possible Renminbi ETF listing in future. The ETF tracks the FTSE China A index, a well-diversified market capitalisation-weighted index offered by FTSE Russell that invests in China A-shares.
The ETF is the first fund product launched by a Europe-based Chinese asset manager, giving investors access to large and mid-cap equities on the Shanghai and Shenzhen stock exchanges in China via the Renminbi Qualified Foreign Institutional Investor (RQFII) scheme.
Miller Guo, CEO, GF International Asset Management said: “We selected Euroclear’s ICSD service for our first ETF in Europe for its Renminbi settlement and clearing capabilities and to maximise post-trade efficiency. GF International is responsible for both the ETF’s investment management and distribution, where other Chinese ETFs listed in Europe are distributed via third parties or joint-venture products. We are very pleased to have established such a key partnership for our growth and future success.”
Mohamed M'Rabti, Deputy Head of FundsPlace, Euroclear added: "We are very proud to have partnered with GF International. Our international ETF model has gathered a lot of momentum over the past year to facilitate Chinese asset managers tapping into our international client base. It is an honour to be the infrastructure provider of choice to support GF International’s ambition to channel inbound investments into the onshore equity markets in China.”