Van Eck Introduces First Onshore China Bond ETF

For example, Chinese government bonds yield around 4%, but 10-year U.S. Treasuries currently yield less than 2.4%.

Van Eck again partnered with ChinaAMC to gain a renminbi qualified foreign institutional investor (RQFII) quota for CBON. RQFII status is essential for investment firms to be a foreign owner of A-shares or Chinese onshore bonds.

Van Eck and ChinaAMC have previously partnered on the Market Vectors ChinaAMC A-Share ETF (NYSEArca: PEK), the oldest U.S.-listed A-shares ETF, and the Market Vectors ChinaAMC SME-ChiNext ETF (NYSEArca: CNXT).

CNXT, which debuted in July, provides exposure to the 100 most liquid mid- and small-cap stocks that trade on the Small and Medium Enterprise (SME) Board, China’s answer to the NASDAQ, and the ChiNext Board of the Shenzhen Stock Exchange (SZSE). [Another A-Shares ETF Debuts]

CBON Index Sector Breakdown

Table Courtesy: Market Vectors