SSgA co-launches first Chinese ETF
StateStreet Global Advisors (SSgA) has joined up with Shanghai-based China Asset Management Company (China AMC) to launch the first Exchange Traded Fund (ETF) — the Shanghai 50 ETF — in the country of 1.3 billion people.
The Shanghai 50 ETF will be based on the Shanghai 50 Index and is expected to be available by the end of the year.
The index itself was launched by the Shanghai Stock Exchange in January this year and contains the top 50 Chinese companies by market capitalisation and includes the most liquid and investable stocks in the market.
China AMC is one of the pioneers of indexing in China, having launched the first index fund, Xinghe Fund, in 1999.
In 2002, the group was appointed by the Shanghai Stock Exchange to conduct research on ETF products and was appointed by the Shanghai Stock Exchange in 2004 to develop and launch China’s first ETF.
According to SSgA Asia managing director Vincent Duhamel, exchange traded funds have grown in prominence worldwide due to offering investors very flexible and low cost access to markets.
“Given these advantages, we are confident that this ETF will be popular amongst both Chinese and international investors,” Duhamel says.
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