Even with the rally, a dichotomy has emerged. Investors are pulling money out of A-shares ETFs in Hong Kong, but here in the U.S., ASHR can hardly keep up with demand.
Since the start of November, ASHR has added $163.5 million in new assets. On Monday, Deutsche Asset & Wealth Management (DAWM) announced ASHR’s creation limit has been increased to five creation units per day from the previously imposed limit of one. [Creation Limit Increased for A-Shares ETF]
Last month, DAWM was forced to limit creations in ASHR and ASHS for the second time in just over two months after strong demand forced the two ETFs to bump up against their respective Renminbi Qualified Foreign Institutional Investor (RQFII), which allows the funds to purchase A-shares equities.
Shanghai Composite
Chart Courtesy: J. Lyons Fund Management