ETF tracking USlisted China companies unveiled

Added 16th June 2015

ETF tracking USlisted China companies unveiled

The XIE Shares FTSE Chimerica ETF (Chimerica) was listed on the Hong Kong Stock Exchange today and tracks the FTSE China N Shares All Cap Capped Net Tax Index. 

Apart from the new ETF, the firm has plans to launch three additional ETFs during 2015, Tobias Bland, chief executive at EIP told Fund Selector Asia.

“There are another three products that we are trying to complete in 2015,” Bland said following the launch of Chimerica.

EIP claims Chimerica to be the first ETF in Asia to provide real-time access to Chinese companies listed in the US.

“The product is unique to the market at this point in time."



“The 26 constituent stocks that comprise Chimerica are Chinese companies that Asian investors know well but have not had the chance to invest into in real-time. These N-shares tend to be concentrated in both the internet and technology sectors.”

The firm said the stocks currently listed on the Chinese A-share and Hang Seng China Enterprises indices offer only a finite exposure to the growing internet and technology sector in China, whereas Chimerica has about 85% exposure to this sector.

According to Bland, the CSI 300 Index has a 1% exposure to the internet and technology sector while the MSCI China has a 12% weighting.

The ETF tracks the index which has some largest Chinese companies such as Alibaba, Baidu,, NetEase, Vipshop, Ctrip and Sina Corp.

“Beijing has made it clear that in order to spur economic growth it will look to the internet and technology sectors to provide the much needed boost. The companies in these sectors, which are mostly listed in the US, should benefit alongside China’s ‘internet plus’ strategy,” Bland added.

Bland said he believes the demand for internet and technology companies could get a further boost with the MSCI expected to include the US-listed Chinese companies in the MSCI China Index in November.  

The launch of Chimerica follows a deal with CLSA in August, when the brokerage and investment group bought a 49% stake in EIP. 

“Partnering with CLSA enables EIP to maximise distribution for Chimerica through CLSA’s institutional investor client base and the retail distribution network of CLSA’s parent company, CITIC Securities International,” EIP said.

EIP is a Hong Kong based investment management firm established in 2002. 

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