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Amundi targets investors with Hong Kong’s cheapest FTSE China A50 exchange traded fund

Banking sector is the priority for foreign investors in A-share market, says France-based asset manager

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The Amundi FTSE China A50 exchange traded fund is Hong Kong’ s cheapest in the category. Photo: Xinhua
Jennifer Li
Amundi Asset Management, the largest European asset manager in terms of the global assets under management, on Monday launched its FTSE China A50 exchange traded fund (ETF) that is Hong Kong’ s cheapest in the category.
The new fund will track the FTSE China A50 Index, an index comprising the 50 largest A share companies listed on the Shanghai and Shenzhen bourses and has about US$7.2 billion worth of assets benchmarked to it.

France-based Amundi is the fourth asset manager after CSOP Asset Management, Bosera Asset Management and BlackRock Asset Management North Asia to offer an FTSE China A50 ETF in the city. However, its estimated charges of 0.48 per cent are the lowest, when compared with the average 1.03 per cent levied by its peers for similar funds.

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Amundi’s Gaetan Delculee says investors in the city are becoming more cautious on the fee structure and liquidity of funds. Photo: K. Y. Cheng.
Amundi’s Gaetan Delculee says investors in the city are becoming more cautious on the fee structure and liquidity of funds. Photo: K. Y. Cheng.

“Expenses matter when you are selecting an ETF... investors are becoming more cautious on fees and liquidity and we are monitoring these two parameters extremely closely,” Gaëtan Delculée, head of Amundi ETF, Indexing & Smart Beta Sales France & Luxembourg said during a briefing in Hong Kong.

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“I think ETF providers need to provide the most cost efficient products for customers,” he said.

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