ETF Securities, the ETF provider known primarily for its lineup of commodities funds, could be the next sponsor to introduce a China A-shares fund.
In a statement issued Sunday evening, ETF Securities and E Fund Management announced they have licensed the MSCI China A Index from index provider MSCI (NYSE: MSCI) “as the basis for a proposed exchange traded fund.”
It is expected the product will be the first UCITS ETF listed in London tracking the MSCI China A Index. UCITS, or Undetakings for the Collective Investment of Transferable Securities, denotes funds that can be marketed in countries that are members of the European Union.
“As MSCI continues to evaluate the inclusion of Chinese A shares into its flagship Emerging Markets Index, we believe that working with them on this initiative will appeal to investors currently utilising this index as a benchmark,” said Matt Johnson, Head of Distribution EMEA, ETF Securities, in the statement.