Chinese A-Shares are a specific class of equity securities issued by Chinese companies and denominated in RMB. Under current Chinese regulations, foreign investors may access A-Shares if they are a designated foreign institutional investor or gained access through either the Qualified Foreign Institutional Investor (QFII) or a Renminbi Qualified Foreign Institutional Investor (RQFII) programs.
BlackRock Inc., which offers the iShares ETF suite, is MSCI’s largest customer by revenue and has been preparing for the inclusion of Chinese stocks, according to the Wall Street Journal. In May, the money manager said it had been granted the right ti invest an additional 2 billion yuan, or $320 million, in mainland markets under China’s Renminbi Qualified Foreign Institutional Investor program.
Related: China A-Shares Back on MSCI EM ETF’s Radar
Some other broad China A-shares ETFs include the KraneShares Bosera MSCI China A ETF (NYSEArca: KBA), Market Vectors ChinaAMC A-Share ETF (NYSEArca: PEK) and CSOP FTSE China A50 ETF (NYSEArca: AFTY).
For more information on Chinese markets, visit our China category.
db X-trackers Harvest CSI 300 China A-Shares Fund