Daily ETF Watch: China Firm Plans Funds

China’s CSOP files paperwork with the SEC for ETF exemptive relief.

HeatherBell_green_bg
|
Reviewed by: Heather Bell
,
Edited by: Heather Bell

China’s CSOP files paperwork with the SEC for ETF exemptive relief.

CSOP Asset Management has filed exemptive relief paperwork with the U.S. regulators outlining its plans to launch self-indexed funds on the U.S. market.

The filing requests permission to roll out index-based equity and fixed-income funds that can invest in foreign as well as domestic securities. The filing also makes allowances for funds using indexes from unaffiliated benchmark providers and for self-indexed funds.

CSOP is a Hong Kong-based subsidiary of a fund management company domiciled in mainland China. It has a handful of ETFs and mutual funds trading in Hong Kong, and its website says it has the most assets under management of any RMB qualified foreign institutional investor asset manager. CSOP was mentioned as the subadvisor in Exchange Traded Concepts’ filing for the CSOP Source FTSE China A50 ETF in January.

However, that particular fund may now fall under the umbrella of CSOP’s exemptive relief application. The initial fund described in the latest filing is the CSOP FTSE China A50 ETF, and it will track the same index as the fund in the ETC filing. The FTSE China A50 Price Index covers the largest securities in the China A-share market.

Ready To Launch
Two fund families appear to have offerings that are on the verge of launching:

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.