Business News

Ireland provides home for first China A-Shares ETF in Europe

By Business & Finance
09 January 2014

The Irish Funds Industry Association today welcomed the launch of the first Exchange Traded Fund (ETF) to offer European investors access to the China A-Shares equity market – widely viewed as the most authentic Chinese equity market.

 The Irish-domiciled CSOP Source FTSE China A50 UCITS ETF invests directly into the China A-Shares market under the Renminbi Qualified Foreign Institutional Investor (RQFII) quota scheme. This development blends the credibility and widespread use of Irish domiciled UCITS funds with the RQFII quota scheme. In the process, it has opened up opportunities for both retail and institutional investors seeking direct access to one of the worlds’ most important and untapped equity markets. A-Shares are shares of mainland Chinese companies, traded on mainland Chinese exchanges, and denominated in Chinese renminbi.

Commenting on the launch, Pat Lardner, CEO of the Irish Funds Industry 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.”

Lardner added: “The IFIA and its members continue to spend significant time working with international investment managers of all sizes to allow them to capitalise on Ireland’s reputation for speed, efficiency and service excellence, helping them break new ground with their investor solutions.”

Ireland is already the leading European domicile for ETFs representing approximately 32% of the overall market, servicing over €62bn of the €195bn European ETF market. Ireland also boasts the largest hedge fund administration centre in the world, representing over 40% of all global hedge fund assets, and is the European domicile of choice for cross border fund distribution with over 30% of the European cross border market.

“Ireland is a natural home for this innovative, new product due to its reputation for regulatory excellence, world-class service levels and expertise in ETFs. Ireland’s pre-eminence as a jurisdiction for exchange traded funds has helped support Source’s rapid growth from start-up to one of the ETF industry leaders,” Ted Hood, CEO of Source said.