Posted on October 29, 2009 - by Alvin

United FTSE/Xinhua China A50 ETF – Getting access to A Shares

Photo by Mirko Macari

UOB Asset Management is launching an A-shares ETF on SGX Mainboard. Buying and owning A-shares is limited to Chinese Nationals and selected foreign institutions. With this ETF, it realises the wish of many people to own China’s A-shares. The current China ETFs listed in SGX are db x-trackers FTSE/Xinhua China 25 and Lyxor ETF China Enterprise. The former consists of H-shares and red-chips while the later only contain H-shares. Hence, this new ETF is currently the only chance of retail investor to access China A-shares in Singapore.

If you are still confuse among A-shares, B-shares, etc, you can read the definitions which are taken from FTSE’s website:

A-Shares

Securities of Chinese incorporated companies that trade on the Shanghai or Shenzhen stock exchanges, quoted in Chinese Renminbi (RMB). Traded by residents of the People’s Republic of China (PRC) or international investors under the China Qualified Foreign Institutional Investors (QFII) regulations.

B-Shares

Securities of Chinese incorporated companies that trade on the Shanghai Stock Exchange (quoted in US Dollars) or the Shenzhen Stock Exchange (quoted in Hong Kong Dollars – HKD). Traded by both non-residents of the PRC and residents with appropriate foreign currency dealing accounts. Read more…

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