Van Eck Global has launched the first US-listed exchange traded fund designed to provide exposure to China’s A-Share market. Access to the market is limited, being restricted to domestic Chinese investors and a limited number of qualified foreign institutional investors (QFII).
For years, Shanghai has been the undisputed king of China’s equity markets, vitalised by a steady stream of initial public offerings from the country’s biggest and best state-owned enterprises.
But this year Shanghai has been outgunned by Shenzhen, its less glamorous rival in the south of China, because of an extraordinary boom there in IPOs by smaller, private companies.