In early January, Van Eck, parent company of Market Vectors, entered an agreement with China Asset Management, China’s largest mutual fund manager by assets under management, that allowed for the Market Vectors ChinaAMC A-Share ETF (NYSEArca: PEK) to join ASHR as the only two U.S.-listed ETFs that hold A-shares equities, not a basket of derivatives. PEK is down 8.9% year-to-date. [Market Vectors China ETF Makes A-Shares Leap]
Additionally, Source, a Europe-based asset manager and provided of exchange traded funds, and Hong Kong-based CSOP Asset Management have filed plans with the Securities and Exchange Commission to possibly list a China A-shares ETF in the U.S. [Source, CSOP Eye China A-Shares ETF]
Investors should be aware that the Chinese tax authorities can apply restroactive withholding taxes on dividends and capital gains, Aldous warned. However, providers will hold back a portion of dividend and capital gains on the ETF in case of a tax on a later date.
For more information on China, visit our China category.