“Liquidity is a critical component of the investment process. Regardless of the channel they use, investors say that they need access to daily liquidity. They believe that this access should apply to all investment vehicles,” according to MSCI.
However, thanks in part to the Hong Kong/Shanghai Stock Connect program, Deutsche AWM has been able to increase quotas and source additional liquidity for ASHR and ASHS, something market makers and authorized participants are aware, but many advisors and investors do not yet know about.
“Liquidity is a critical component of the investment process. Regardless of the channel they use, investors say that they need access to daily liquidity. They believe that this access should apply to all investment vehicles,” according to MSCI.
A-shares quotas and liquidity are expected to further improve later this year when the Hong Kong/Shenzhen Stock Connect launches, which could lead to MSCI adding A-shares to its indexes.
Deutsche X-trackers Harvest CSI 300 China A-Shares ETF
