Asian trading venue the Stock Exchange of Thailand (SET) is to list an exchange-traded fund (ETF), ETF China, on its exchange from 22 November 2010. The new product is Thailand's fourth ETF and the first to use foreign securities as its underlying.
ETF China, an open-ended fund managed by Krung Thai Asset Management, invests in W.I.S.E.-CSI 300 China Tracker with the aim of creating returns that are close to those of the CSI 300, an index composed of 300 A-shares listed on the Chinese Shanghai and Shenzhen exchanges.
“ETF China is SET's first ETF that allows investors interested in foreign securities to trade conveniently and quickly using current trading access,” said Charamporn Jotikasthera, SET president. Noting that ETFs have become more popular on foreign exchanges due to their convenience and diversity, he added that he is confident the new ETF will receive significant interest from institutional and retail investors.
“ETF China provides investors with benefits from investing in China, which is the fastest-growing economy in the world,” said Somchai Boonnamsiri, managing director at Krung Thai Asset Management. “This fund will enable Thai investors to receive returns close to the movement of the underlying fund, which reflects index prices of securities in China.”
Thai firm Phatra Securities is participating dealer and market maker for the ETF. Other participating dealers are SET member Asia Plus Securities, Bualuang Securities, DBS Vickers, KGI Securities and KT Zmico Securities. The Thailand Securities Depository is registrar.
SET recently announced plans to launch non-voting depository receipts for foreign institutional investors, as part of a bid to grow its business in preparation for demutualisation next year.