Deutsche Asset & Wealth Management (DAWM), the exchange traded funds unit of German banking giant Deutsche Bank (NYSE: DB), said Friday it is increasing creations of new shares in the Deutsche X-trackers Harvest CSI 300 China A-Shares ETF (NYSEArca: ASHR).
ASHR, the largest U.S.-listed ETF offering investors exposure to China’s A-shares equities traded on the onshore markets in Shanghai and Shenzhen, will see its creation limit lifted to 25 creations per day from one effective March 2, according to statement from DAWM.
From September through December, DAWM was forced to limit creations in ASHR three times because strong investor demand for the fund was forcing it to to bump up against their respective Renminbi Qualified Foreign Institutional Investor (RQFII), which allows the funds to purchase A-shares equities. [Another Creation Limit for an A-Shares ETF]
The most recent creation limit for the ETF went to effect on Jan. 21, marking the third DAWM DAWM and ASHR’s sub-advisor, Harvest Global Investments Limited, have been quick to land larger RQFII quotas to get ASHR’s larger creation limits. In all three instances of ASHR creation limits, DAWM and Harvest Global were able to obtain larger RQFII quotas in a matter of weeks.
The $1.05 billion ASHR, the fourth-largest U.S.-listed China ETF, has an RQFII quota of 6.19 billion renminbi, according to DAWM data.