LSE lists first Chinese ETF

Chinese asset manager lists fixed income ETF on London Stock Exchange.

The London Stock Exchange is to list its first ETF from a Chinese asset manager. The ETF, created by FullGoal Asset Management, tracks the FTSE China Onshore Sovereign and Policy Bank Bond index, which will reflect the performance of bonds circulating in Mainland China.

Nikhil Rathi, Chief Executive of London Stock Exchange and Group Director of International Development, said: “Todays Listing is Significant as it is the first time a Chinese firm has listed an ETF independently in Europe. In choosing to list this ETF, FullGoal have shown that LSEG is the partner of choice for Chinese issuers looking to access European investor capital”.  

LSE said Fullgoal is also expected to list the ETF on Borsa Italiana later this week.

Michael Chow, Head of International Business and Managing director at FullGoal said: “ Our Fund provides an avenue for overseas investors to access an otherwise not easily accessible market. We believe that, over time, RMB (CYN) fixed income will become an essential asset class for global investors.”

The listing comes as London attempts to establish itself as the leading offshore venue for RMB-denominated product issuance. According to the London Stock Exchange, this year alone boasts the first Chinese sovereign RMB bond issued outside of China, the first issuance of 5 billion RMB short term central banks notes in Europe, and the first issuance of $1 billion dual currency green bonds in a European city including a 600 million RMB-denominated tranche by the Agricultural bank of China.

Just less than a year ago, UK chancellor George Osborne stated: “The People’s Bank of China’s decision to issue renminbi bonds in London would “cement” the capital’s position as “China’s bridge into Western financial markets”.