First China ETF On London Stock Exchange

First China ETF On London Stock Exchange

First China ETF On London Stock Exchange

The FINANCIAL -- London Stock Exchange today welcomes a new China-focused ETF from ICBC Credit Suisse Asset Management (International) Company Limited ("ICBCCS"). The ICBCCS WisdomTree S&P China 500 UCITS ETF is the tenth RQFII ETF to list on London Stock Exchange and the third RQFII product to launch in 2016.

ICBCCS becomes the seventh Chinese firm to issue an ETF on London Stock Exchange, further strengthening LSEG’s position as the partner of choice for Chinese issuers looking to access European and international capital, according to London Stock Exchange Group.

To mark the launch of the ETF, London Stock Exchange today welcomed Richard Tang, Chief Executive Officer, ICBCCS to open trading in London.

Pietro Poletto, Head of ETF and Fixed Income Markets, London Stock Exchange Group said:

“London is the world’s most international financial market and has established itself as the leading offshore centre for RMB-denominated products. Chinese issuers are increasingly looking to access European investors and today’s listing is the tenth RQFII ETF listed on London Stock Exchange and the third already this year. We are delighted ICBCCS has chosen to list this product in London and look forward to work with them as we continue to strengthen our ties with Chinese issuers”.

Richard Tang, Chief Executive Officer, ICBCCS said:

“We are proud to announce the listing of the first ETF that tracks the S&P China 500 Index. The ETF combines exposure to both onshore and offshore China equity share classes which offers investor a diversified and transparent tool to access the broad China market efficiently. With access to the exposures of the top 500 Chinese corporations listed across multiple markets, we are delighted to launch this flagship China ETF in London."

The ETF listing comes as London has established itself as the leading offshore venue for RMB-denominated product issuance. The last year alone has seen important milestones reached in developing the China-London relationship including:

First Chinese sovereign RMB bond issued outside of China listed on London Stock Exchange;

People’s Bank of China issued RMB 5 billion of short-term central bank notes in London – the first time it has done so outside China;

Agricultural Bank of China listed $1billion dual currency green bonds in London, including a 600 million RMB-denominated tranche. This was the first international green bond issuance by a Chinese bank;

China’s four major banks and China Development Bank have all listed bonds on London Stock Exchange;

Year to date, London Stock Exchange has seen 54 RMB bonds be issued on its markets, of 80 issued worldwide. These come from a wide range of issuers in terms of geography as well as international institutions and sovereigns;

London Stock Exchange has 10 RQFII ETFs providing direct exposure to Chinese A-share equities and fixed income markets, more than any other European platform. In addition, a further 9 ETFs offer direct exposure to China;

Three RQFII ETFs listed in 2016: ICBCCS WisdomTree S&P China 500 UCITS ETF, Fullgoal FTSE China Onshore Bank Bond ETF and the db X-trackers Harvest FTSE China AH 50 ETF.

The ICBCCS WisdomTree S&P China 500 UCITS ETF is denominated in RMB and trades on London Stock Exchange in USD and GBP.