Harvest Global Investments Limited Launches Harvest MSCI China A 50 Index ETF
The fund will list with close to RMB 1.60 billion in day-one assets under management (“AUM”) as trading commenced on 6 June on The Stock Exchange of Hong Kong (the “SEHK”).
“With growing interest in China A-Shares, investors are seeking more targeted investment options,” said Dr. Henry Zhao, Chairman of HGI. “The Harvest MSCI China A 50 Index ETF complements our other China A-Share offerings and provides the opportunity to access some of the largest companies in the China A-Share market.”
HGI began trading the Harvest MSCI China A Index ETF, the world’s first dual counter-listed RMB ETF product, on October 12th, 2012. The newly launched Harvest MSCI China A 50 Index ETF will utilize the company’s Renminbi Qualified Foreign Institutional Investor (“RQFII”) status to provide investors with a channel to directly invest into the China A-Share market. The new ETF will also provide flexibility to settle units traded on the SEHK in either Renminbi or Hong Kong dollars through dual counter trading.
The MSCI China A 50 Index (“the Index”) was chosen because it provides greater market coverage and less sector concentration compared to other indices tracking a similar number of constituent stocks. Using its unique selection process, the Index has a larger market float capitalization and lower concentration in its top 20 constituent securities.
“We are pleased to further expand our relationship with Harvest Global Investments Limited with the licensing of the MSCI China A 50 Index as the basis of Harvest MSCI China A 50 Index ETF,” said Henry Fernandez, Chairman and CEO of MSCI Inc. “Harvest’s decision to license a second China A index from MSCI reflects not only MSCI’s position as the benchmark of choice for international equity ETFs2, but also the growing importance of the China A-Shares opportunity set for global investors.”
The new Harvest MSCI China A 50 Index ETF had an IPO price of RMB 8 and began trading in board lots of 200 units.
“Following the launch of the Harvest MSCI China A Index ETF, we are continuing our commitment to provide flexible investment solutions to investors,” said Dr. Zhao. “This innovative product demonstrates Harvest’s leadership in developing and managing passive A-Share strategies.”
HGI’s parent company, Harvest Fund Management is one of the largest asset managers in China, managing a suite of innovative products including 4 ETFs and 6 index funds, with an AUM of USD 10 billion in passive funds and group AUM of over USD 50 billion as of 31 March 2013.