Exchange traded funds (ETFs) offer investors the opportunity to
gain access to
China's rapidly growing economy
, but the country has kept its A-shares marketplace closed off to
U.S. investors. Until now.
Van Eck Global
has filed with the Securities and Exchange Commission (SEC) to
launch 11 new ETFs that will hold A-shares from the Shenzen and
Shanghai stock exchanges, as compared to other China ETF options
that trade in Hong Kong (H-shares) or B-shares,
reports Murray Coleman for Barron's
. The suite of ETFs will include an all-cap China fund, a small-cap
fund and nine sector-related ETFs.
The 11 new funds will be in addition to last week's launch of
the first U.S. ETF with exposure to China's A-Shares, the
Market Vectors China (NYSEArca: PEK)
First China A-Shares ETF Launches.
A-shares are issued by companies that have been incorporated in
the mainland of China, which trade on the Chinese stock markets,
according to China Stock Digest
. These A-shares have experienced high growth as a result of the
slow removal of restrictions placed on the A-shares for foreign
investors and a steadily expanding Chinese economy.
Chinese companies offer A-shares and B-shares, and the only
difference between the two is that A-shares are denominated in the
, whereas B-shares are quoted in foreign currencies. Before the Van
Eck's entry into this market, A-shares were only available to
institutional investors and residents.
For more information on China, visit our
Max Chen contributed to this article.