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. [A-Shares ETF Launch a Sign of Increased EM Access]
The db X-trackers Harvest CSI 300 China A-Shares Fund (NYSEArca: ASHR) was the first physical A-share ETF to launch. The rival Market Vectors China ETF (NYSEArca: PEK) recently obtained RQFII status to transition away from portfolios of derivatives to holding stocks as ASHR does. [Market Vectors China ETF Moves Toward Physical A-Shares Holdings]
The PowerShares China A-Share Portfolio (NYSEArca: CHNA) offers A-shares exposure via a basket of derivatives, though PowerShares is looking to obtain RQFII status. Other U.S.-listed China ETFs track Chinese company stocks listed on Hong Kong or New York exchanges.
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Max Chen contributed to this article.