The iShares MSCI China A UCITS ETF was listed on 13 April. It gives both institutional and retail investors access to China’s A-share equity market.
The fund will invest in large and mid-cap companies and track the MSCI China A International Index.
Despite the more accommodating nature of the A-shares market seen in the past year, BlackRock cited the restrictions still imposed on the foreign purchase of A-shares as a key factor behind the decision to launch the ETF.
“Investor interest in China is high and shows no sign of abating. This fund offers high quality, low-cost exposure to one of the few global equity markets that are truly difficult for international investors to enter,” Tom Fekete, head of product for iShares EMEA, said:
The total expense ratio for the fund is 0.65%, which BlackRock said is ‘lower than comparable physically replicating China A-share ETFs open to international investors’.
The fund launch coincides with a Deutsche Asset & Wealth Management announcement that it is reducing the TER on its China A-share ETF to 0.65%.