Wed, Dec 08, 2010 - Page 11 News List

Shanghai stocks fund tracker to list

Staff writer, with CNA

The W.I.S.E. SSE 50 China Tracker exchange traded fund (ETF), which tracks 50 stocks listed in Shanghai, is scheduled to be listed on the nation’s main bourse on today, the Taiwan Stock Exchange Corp (TWSE, 台灣證交所) said on Thursday.

The SSE 50 China Tracker fund was registered in Hong Kong in April last year and has been listed on the Hong Kong Stock Exchange, with BOCI-Prudential Asset Management Ltd (中銀保誠資產管理) serving as the fund’s manager. Taiwan-based KGI Securities Investment Trust Co (凱基投信) has been appointed as a trustee of the fund.

With the listing, the new fund will become the 15th ETF and the third offshore ETF to be listed on the TWSE. The first two offshore ETFs on the main bourse were the Hang Seng H-Share Index ETF and Heng Seng Index ETF.

The fund will be the first foreign ETF in the nation to track the performance of the 50 largest cap A-shares listed on the Shanghai Stock Exchange. The 50 stocks are the constituents of the SSE 50 Index, which is the largest and most liquid index launched by the Shanghai Stock Exchange, TWSE said.

As the 50 stocks account for more than 70 percent of the Shanghai Stock Exchange’s capitalization, they generally reflect the operations of the bellwether and most influential enterprises listed in the Shanghai stock market, it added.

The 10 largest stocks in the fund include Ping An Insurance Group Co of China Ltd (中國平安保險), China Merchants Bank Co (招商銀行), Bank of Communications Co (交通銀行), China Minsheng Banking Corp (民生銀行), Industrial Bank Co (興業銀行) and CITIC Securities Co (中信證券).

There will be no 7 percent daily upward and downward limits for the fund on the local bourse as required for other stocks because the stock has been listed in Hong Kong, where there are no such limitations.

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