Invesco PowerShares Capital Management LLC, a leading global provider of exchange-traded funds (ETFs), announced the launch of the PowerShares China A-Share Portfolio (NYSEARCA:CHNA) on the NYSE Arca. CHNA is the first ETF providing exposure to the China A-Shares market by investing primarily in SGX FTSE China A50 Index Futures.
“U.S. investors currently have very limited access to China’s domestic A-Shares market, which embodies the amazing growth story of the world’s second largest economy by GDP,” said Lorraine Wang, Invesco PowerShares global head of ETF products and research. “The PowerShares China A-Share Portfolio (CHNA) is uniquely designed to provide a liquid, efficient and cost effective alternative to direct investments in China A-Shares.”
CHNA is an actively managed ETF that seeks long-term capital appreciation by providing exposure to the China A-Shares market using a quantitative, rules-based investment strategy. CHNA will invest primarily in the SGX FTSE China A50 index futures, as well as other instruments such as ETFs providing exposure to the largest companies within the China A-Shares market, and A-Shares to the extent permissible under Chinese law. CHNA will have a management fee of 0.50%. 1
“We are very excited to work with Invesco PowerShares on this landmark investment vehicle allowing US investors to allocate and diversify their portfolios into Asia’s dominant growth engine,” said Michael Syn of the Singapore Exchange (SGX). “The SGX FTSE China A50 Index Futures is the only offshore futures on the China A-Shares market without Qualified Financial Institutional Investor (QFII) requirements, and is the most liquid offshore exchange-traded vehicle providing exposure to China A-Shares market.” 2
To learn more about PowerShares China A-Share Portfolio (CHNA), visithttp://www.invescopowershares.com/china-a/
1. Since ordinary brokerage commissions apply for each buy and sell transaction, frequent trading activity may increase the cost of ETFs.
2. Source: SGX Singapore Exchange, as of Aug. 31, 2013
About Singapore Exchange (SGX)
Singapore Exchange (SGX) is the Asian Gateway, connecting investors in search of Asian growth to corporate issuers in search of global capital. SGX represents the premier access point for managing Asian capital and investment exposure, and is Asia’s most internationalized exchange with more than 40% of companies listed on SGX originating outside of Singapore. SGX offers its clients the world’s biggest offshore market for Asian equity futures market, centered on Asia’s three largest economies – China, India and Japan. The SGX Asian Gateway provides central-clearing on a CFTC-regulated platform.