As China is opening its stock market to greater foreign investment, licensed fund managers are using their own Renminbi Qualified Foreign Institutional Investor (RQFII) quota to offer new products to their clients. BlackRock has today launched an ETF focused on the hard-to-access A shares in China, that aims to track the performance of the MSCI China A International Index. This index represents a broad and diversified basket of over 300 large and mid cap stocks.
The fund is listed on the London Stock Exchange, giving BlackRock’s international institutional and retail clients direct access to China’s A share equity market. A shares are mainland China incorporated companies listed on the Shanghai and Shenzhen Stock Exchanges. China A shares represents about 45.6% of the Chinese equity market, as defined by the MSCI China All Shares Index, which contains A shares, B shares, H shares, red chips and private chips.