The average investor seeking direct access to Chinese stocks traded on mainland exchanges was previously stymied in those efforts. However, exchange traded fund investors can now gain direct access to China A-Shares through a recently launched Deutsche Bank offering.
ETF Trends’ Tom Lydon recently sat down with Luke Oliver, Director at Deutsche Asset & Wealth Management, to discuss Deutsche Bank’s new China ETF, the db X-trackers Harvest CSI 300 China A-Shares Fund (NYSEArca: ASHR), which provides direct access to mainland stocks.
“What we’ve done differently is build a ground breaking product that gets you access to true China A-Shares,” Oliver said, “and we do that through our strategic relationship with Harvest Global Investments.”
Most investors who are interested in gaining exposure to the Chinese equity markets would have to invest in Chinese stocks listed in Hong Kong or the U.S.. Additionally, some have gained exposure to Chinese market moves through derivatives.
Currently, China limits foreign investors’ access to A-shares, which trade in Shanghai and Shenzhen, to Qualified Foreign Institutional Investors and Renminbi Qualified Foreign Institutional Investors. Harvest, a Renminbi Qualified Foreign Institutional Investor (RQFII), meets Chinese regulatory requirements to be a foreign owner of A-shares. [A-Shares ETF Launch a Sign of Increased EM Access]
Watch the video below to see the full interview with Luke Oliver.
To view past video interviews, visit our video section.