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Chinese giant to launch first onshore ETFs in UK

Chinese giant to launch first onshore ETFs in UK

China Post Global is gearing up to launch its first exchange traded funds (ETFs) into the UK after acquiring Royal Bank of Scotland’s (RBS) ETF range last year.

The initial launch, which is set for early April, will be a China onshore smart beta equity strategy, tracking minimum variance on the China A-Shares market.

The Hong Kong-headquartered asset manager, a subsidiary of the $23 billion (£18.7 billion) China Post & Capital Global Asset Management, claims the fund will be the first China smart beta ETF in Europe.

Managing director Danny Dolan told Wealth Manager that the firm also plans to launch a further China A-Shares smart beta ETF later in the second quarter.

He said both funds were in the latter stages of the regulatory approval process, and were likely to have ongoing charges of around 75 basis points.

‘Both onshore Chinese equity smart beta ETFs will become flagship products for us, given our Chinese parentage and derivative backgrounds,’ said Dolan (pictured).

‘Putting China and smart beta together, apart from being something that has not been done before in Europe, is also a very good fit with our own strengths, these are the competitive edges that we have to capitalise on.’

China Post Global acquired RBS’s 10-strong Market Access ETF range, which had €360 million (£284 million) of assets and specialises in commodities and emerging and frontier markets, last March.  

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