Lyxor to launch China government bond ETF

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Lyxor has been recently awarded by S&P Dow Jones Indices a license on the S&P China Sovereign Bond 1-10 Year Spread Adjusted Index, that will allow the manager to launch and list a China government bond ETF in Europe.

The S&P index includes Chinese government bonds with a maturity of one to ten years traded on the Shanghai or Shenzen stock exchanges as well as on the Chinese Interbank Market.

It currently represents a yield to maturity of 3.2% in renminbi for an average duration of 4.2 years, according to Bloomberg figures as of 29 May 2015.

Heather McArdle, Director of Fixed Income Indices at S&P Dow Jones Indices, commented :  “The progressive liberalisation of China’s financial market has offered greater accessibility and flexibility to international investors looking to invest in the world’s second largest economy.

“As European investors increasingly look for China exposure beyond equities, we are excited to license the S&P China Sovereign Bond 1-10 Year Spread Adjusted Index to Lyxor to help bring China government bonds into their toolkit and facilitate portfolio diversification for investors.”

Lyxor’s ETF will be sub-managed by the Hong-Kong arm of the firm’s Chinese joint-venture Fortune SG.

Lyxor has €113.7bn in assets under management and advisory as of 30 April 2015.

Adrien Paredes-Vanheule
Adrien Paredes-Vanheule is deputy editor and French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.

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