New ETF to open advisers to Chinese shares

Advisers will be able to access Chinese shares through a new ETF that will list on the ASX in November in what is being regarded as an Australian first.

The VanEck Vectors China New Economy ETF will list on the ASX later this year and enable Australian investors to access a diversified portfolio of profitable and fast-growing China A-shares via a single trade on the ASX.

VanEck is one of a few Australian asset managers to be granted an RQFII licence to invest in China-A shares directly and its ETF will be the first in Australia.

The fund, CNEW, will track the CSI MarketGrader China New Economy Index, which is a smart beta strategy that targets Chinese companies in the consumer discretionary, staples, healthcare and technology sectors.

VanEck managing director and head of Asia-Pacific Arian Neiron said traditionally Chinese economic growth came from agriculture but that was changing.

“China’s economy is undergoing a profound transformation. Company profits and growth are being fuelled by the consumer staples, consumer discretionary, technology and healthcare sectors, which comprise the ‘new economy’,” said Mr Neiron.

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Therefore VanEck’s fund focused on the new economy said Mr Neiron and the company was uniquely positioned to offer the investment to Australians.

“Our RQFII licence gives us the ability to directly invest in China A-shares and gain a broader exposure to the Chinese economy and we are one of only a few local fund managers that can do this. CNEW is an Australian ETF industry first and with one trade on ASX, investors can access companies driving growth in China’s new economy,” said Mr Neiron.

New ETF to open advisers to Chinese shares
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Eliot Hastie

Eliot Hastie

Eliot Hastie is a journalist at Momentum Media, writing primarily for its wealth and financial services platforms. 

Eliot joined the team in 2018 having previously written on Real Estate Business with Momentum Media as well.

Eliot graduated from the University of Westminster, UK with a Bachelor of Arts (Journalism).

You can email him on: [email protected]

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