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Market Vectors lists first direct Chinese A-Shares ETF

Van Eck Global-owned Market Vectors has listed Australia's first Chinese A-shares ETF on the ASX.

The Market Vectors China ETF (CETF) tracks the "largest and most liquid shares" listed on mainland China's two exchanges, the Shanghai and Shenzhen, the company said in a statement.

"China represents the second largest equity market in the world after the US and many of China's most important companies can only be accessed through A-shares," said Van Eck Global Australia managing director, Arian Neiron.

"While mainland China remains largely closed for foreign investors, through our partnership with China Asset Management Company (ChinaAMC), one of the leading asset managers in China, we are able to offer direct exposure to A-shares," he said.

The product will offer investors the opportunity to access a diversified portfolio of the most traded and largest 300 China A-shares before China transitions into a consumption-based economy and before A-shares are included in major global indices, Mr Neiron said.

"China is currently only 1.72 per cent of the MSCI World All Countries Index. It is 30 per cent of the world economy and growing. This is a large gap that is going to be filled first by indices, then by institutional investors. We expect this growth will provide strong support for A-shares," he said.

ChinaAMC Hong Kong's chief executive, Frank Zhang, echoed Mr Neiron's sentiments.


"China is in a transitional period with the growth rate moderating from high to medium as growth becomes more balanced and sustainable. As a result of this process, capital markets will benefit from monetary easing, financial and fiscal reforms and re-allocation of domestic and international assets. With rapid development and opening-up of the China market, we expect A-shares to become an increasingly important part of asset allocation for global investors," he said.