First China A-Shares ETF in Europe under RQFII launches in Ireland

The Irish domiciled CSOP Source FTSE China A50 Ucits ETF has become the first product of its type under RQFII regulations to launch in Europe.

The launch was announced CSOP and Source, while the Irish Funds Industry Association (IFIA) said that the A-Shares equity market was “widely viewed as the most authentic  Chinese equity market”.

RQFII – the Renminbi Qualified Foreign Institutional Investor – quota scheme is being used by China to manage the development of increasing levels of foreign investment into China’s capital markets. A-Shares represent equity in mainland Chinese companies that is traded on mainland Chinese exchanges and denominated in local currency, the renminbi.

As a Ucits product domiciled in Ireland, the new fund will be available to both retail and institutional investors.

Ireland accounts for some 32% of Europe’s overall ETF market, or some €62bn out of €195bn in assets, according to figures published by IFIA.

Pat Lardner, CEO of the Association said: “This is another significant milestone for the Irish funds industry. It is also a clear demonstration that Ireland and its funds industry remains ahead of the curve when it comes to enabling investment firms to broaden their distribution reach through innovative, well-structured and efficient products.”


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