While A-shares ETFs are not as heavily allocated to the financial services sector as the iShares China Large-Cap ETF (NYSEArca: FXI), the largest China country-specific ETF is, the sector is prominent in these funds. For example, ASHR allocates 41.2% of its weight to the financial services sector, nearly triple its weight to industrials.
PEK has a 35.3% weight to financials, two and a half times its industrial sector allocation. KBA features an almost 36% weight to financials, more than double its 16% industrials allocation. [Stock Connect Could Lift A-Shares ETFs]
The PBOC rate cut could keep money flowing to A-shares ETFs. In the week ended Nov. 20, ASHR added $67.2 million in new assets to bring its assets under management total to $543.5 million. Demand for that ETF has been so robust that on two separate occasions over the past 70 days, Deutsche Asset & Wealth Management has been forced to announce limited creations for the fund. [A-Shares ETFs Still Eying Emerging Markets Promotion]
PEK added nearly $6.8 million in the week ended Nov. 20, including more than $3 million on Nov. 17, the day the Shanghai-Hong Kong Stock Connect debuted, representing the ETF’s best one-day inflow since March.
Market Vectors ChinaAMC A-Share ETF
