South Korea’s Samsung Asset Management said on Monday that it was floating the third exchange-traded fund (ETF) jointly with its Chinese partner CCB Principal Asset Management Co. on the Shanghai Stock Exchange.
The latest ETF tracks Morgan Stanley Capital International (MSCI) China A Inclusion Index that consists of 234 Chinese large-cap stocks including Kweichow Moutai Co. and China Merchants Bank.
The launch of the 340 billion won ($313.1 million) ETF is timed with the inclusion of the Great China Equity Fund on the MSCI Emerging Markets Index from next month. It is the third ETF product to be launched in Shanghai under the advisory of Samsung Asset Management following the CCB Principal SSE50 ETF in January and the CCB Principal Chinext ETF in March.
Samsung Asset Management has been providing comprehensive advisory service for ETF listing such as product development, marketing, and management to China’s second-largest asset management firm CCB Principal Asset Management based on a partnership agreement that was signed in 2015.
China’s ETF market is estimated at around 82 trillion won - double the size of Korea’s 41 trillion won - but listed members total 181, compared with 360 in Korea.
The official from Samsung Asset Management said that the company plans to secure leading position in the ETF market under the partnership with CCB Principal Asset Management with eyes on the liberalization of ETF trade between the mainland and Hong Kong.
By Hong Jang-won and Lee Eun-joo
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