WisdomTree lists ICBCCS WisdomTree S&P China 500 UCITS ETF in offshore Yuan on the London Stock Exchange
CNH-denominated UCITS ETF is the latest from the WisdomTree ICBC Credit Suisse Asset Management (International) Company Limited (“ICBCCS”) partnership
WisdomTree, the exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor today announced the listing of the ICBCCS WisdomTree S&P China 500 UCITS ETF Class B USD in offshore Yuan CNH (CHIC). The latest currency line follows on from the recent launch of the ICBCCS WisdomTree S&P China 500 UCITS ETF Class B USD listed in USD (CHIN) and GBP (CHIP) on the London Stock Exchange. This is the first UCITS ETF to provide access to all China equity share classes.
The ICBCCS WisdomTree S&P China 500 UCITS ETF Class B USD is a physical fund that owns the underlying securities and tracks the S&P China 500 Index, which offers broad coverage of all classes – including A-Shares – of China equities.
The S&P China 500 Index uses a rule-based process to measure the world’s second largest economy and equity market. The index captures the key characteristics of the total Chinese equity market –including A-shares and H-shares, and other international listings – by using predominantly large and liquid securities. The use of a sector-based stock selection process then allows the index to reflect the sector allocation at the broad China index level. This methodology allows the index to be more reflective of the evolution of the Chinese economy than other equity indices, which are limited in the share classes that they include.
Nizam Hamid, ETF Strategist at WisdomTree Europe, said:
“At WisdomTree, we are in the business of offering the most efficient means of accessing the global markets. This latest ETF opens up even more opportunity for European investors wanting to access the full China growth story in a single trade. With the addition of a CNH listing, investors now get even more choice when it comes to their own investing preferences. China remains a critical exposure having the highest weight in emerging market indices.”
“China’s onshore market is large and dynamic with unique growth characteristics, which is highly attractive to investors,” said Alex Matturri, Chief Executive Officer at S&P Dow Jones Indices. “We are delighted to work with both WisdomTree and ICBC Credit Suisse to licence our innovative and transparent S&P China 500 Index solution which comprises the largest and most liquid companies in China.”
Laura Lui, Head of Index & Quantitative Investment of ICBC Credit Suisse Asset Management (International) commented:
The global product partnership between ICBCCS and WisdomTree brings immense opportunity to both companies. WisdomTree’s global ETF expertise complements ICBCCS’s in-depth understanding of the Chinese market – together we offer the investors comprehensive access to China. The launch of the CNH denominated S&P China 500 ETF in addition to the USD and GBP listing demonstrates our commitment to provide pioneering solutions with diversified, transparent and efficient tools for accessing China. The internationalisation of RMB has always been one of the key subjects of global investors, and the newly launched ETF is another milestone for an RMB-denominated, total China solution.
The details of the ICBCCS WisdomTree S&P China 500 UCITS ETF are:
|Fund||Ticker||ISIN||Base Currency||Listing Currency|
|ICBCCS WisdomTree S&P China 500 UCITS ETF Class B USD||CHIC||LU1440654330||USD||CNH*|
|ICBCCS WisdomTree S&P China 500 UCITS ETF Class B USD||CHIN||LU1440654330||USD||USD|
|ICBCCS WisdomTree S&P China 500 UCITS ETF Class B USD||CHIP||LU1440654330||USD||GBx|
* On Bloomberg and London Stock Exchange, offshore Yuan is denoted by the symbol CNY
State Street Bank S.A. in Luxembourg has been appointed to provide fund administration and custody services for the Luxembourg domiciled ETF. The TER of the fund is 0.75% p.a.