UK investors gain access to Chinese A-shares through new ETFs

Source has listed a physically replicated Chinese A-Share ETF on the London Stock Exchange, following in the footsteps of Deutsche Bank.

The move marks a shift in Chinese equity ETFs, which have so far predominantly accessed China through H-shares listed on the Hong Kong Stock Exchange, due to China's restriction on foreign ownership. Deutsche Bank and Source have teamed up with Asian asset managers holding the RMB Qualified Foreign Institutional Investor (RQFII) license in order to invest directly in A-shares. Deutsche Bank partnered with specialist Asian asset manager Harvest Global Investments, while Source is working with Hong Kong based CSOP Asset Management. The new ETFs will give European investors the option...