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Value Partners launches Value China A-Share ETF
Value Partners Group’s wholly-owned subsidiary, Value Partners Hong Kong, has launched Value China A-Share ETF, the world’s first-ever value-based Renminbi Qualified Foreign Institutional Investor (RQFII) A-share ETF1 that tracks a customized index
The Asset 24 Mar 2015

Value Partners Group's wholly-owned subsidiary, Value Partners Hong Kong, has launched Value China A-Share ETF, the world's first-ever value-based Renminbi Qualified Foreign Institutional Investor (RQFII) A-share ETF1 that tracks a customized index and aims to deliver potential excess returns through Value Partners' proprietary stock screening process.

 

Listed on the Stock Exchange of Hong Kong on March 24 2015 with a Hong Kong dollar and renminbi dual counter arrangement, Value China A-Share ETF offers investors a simple and cost effective way to invest in the China A-share market. While most A-share ETFs in the market are passive funds that track the performance of market indices, Value China A-Share ETF tracks a customized index which adopts a robust screening model to identify undervalued stocks with good fundamental quality. Its constituent stocks are subjected to valuation, quality and contrarian screenings, with an aim to generate potential excess returns over the market. In addition, the customized index is rebalanced twice a year to tap value opportunities in the China A-share market in a timely manner.

 

Dato' Cheah Cheng Hye, chairman and co-chief investment officer of Value Partners said, "As China continues to open up its capital markets, we see increasing opportunities for A shares to be included in international indices, which will boost the inflow of capital in the long run. We foresee that this will lead in coming years to a significant expansion in the price-earnings multiples of Chinese stocks. Value China A-Share ETF is the seventh exchange-traded fund that we have established in Hong Kong. We hope that it will meet the needs of both institutional and individual investors who wish to find value in the China A-share market."

 

Launched in 2011, FTSE Value-Stocks China A-Share Index is calculated and maintained by FTSE Group. The Index has delivered a solid cumulative return of +551%2 since its base date in May 2005. As of the end of February 2015, the Index recorded a gain of +67%3 over the past year.

 

The newly launched Value China A-Share ETF further completes the suite of Value ETF Equity Series which includes Value China ETF (3046 HK), Value Japan ETF (3084 HK), Value Korea ETF (3041 HK) and Value Taiwan ETF (3060 HK). Members of the Value ETF Equity Series replicate their respective FTSE Value-Stocks indices in full to minimize tracking error, and unlike synthetic ETFs, they hold physical shares as underlying investments.

 

 

 

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