A German-Chinese joint venture has launched what it says are the first exchange-traded fund (ETF) derivatives based on underlying Chinese assets in Europe.
The futures, available on the China Europe International Exchange (Ceinex), are based on the db x-trackers Harvest CSI300 Index ETF, which tracks the biggest 300 companies on the Shanghai and Shenzhen exchanges by market capitalisation. The futures are designed to allow investors to hedge their positions in Chinese mainland-listed equities, known as A-shares.
“With this new product Ceinex is advancing its market offer to become a full-fledged securities and derivatives market place for offshore renminbi and China-related financial instruments,” said Chen Han, co-chief executive of Ceinex.
Ceinex is a joint venture from Deutsche Börse, the Shanghai Stock Exchange and the China Financial Futures Exchange. Headquartered in Frankfurt, Ceinex is designed to be a European listing and trading centre for offshore-renminbi securities.
The ETF derivatives were launched in cooperation with Eurex, Europe's largest derivatives exchange.
“Launching this new product is the first step towards a broad China-related derivatives offering,” said Michael Peters, deputy chief executive of Eurex Frankfurt. “Currently, we are exploring further possibilities of financial derivatives based on China related underlyings.”
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