ETF Explainer: RQFI

Our explainer takes a look at the db X-trackers Harvest CSI300 UCITS ETF and its wild ride over the past 12 months as China's market has seesawed.

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Editor, etf.com Europe
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Reviewed by: Rachael Revesz
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Edited by: Rachael Revesz
db X-trackers Harvest CSI300 Index UCITS ETF

Each issue, we look at an ETF with a particularly interesting chart and explain the market forces behind its performance. This time, we look at the db X-trackers Harvest CSI300 UCITS ETF, an exchange traded fund which has around £158 million in assets under management, and which had a very volatile year, including a phenomenal rally until the summer and a steep decline in July and August.

 

ETFExplainerRQFI

For a larger view, please click on the image above.

 

OCT 16 China A-shares rally more than 50% in 2014 as the country shifts to a more manageable growth pace, even as investors remain concerned about long term issues.

JAN 7 2015 starts with a bang as the A-shares rally begins, with the underlying index already rising 5 7 6% to 775 points from 16 Oct.

JUN 8 After a whopping rise of 120% from 16 Oct., the China A-shares market reaches its summer peak in line with investor confidence and their increasing leverage.

JUL 8 The Chinese government steps in at the peak of volatility to prop up its equity market. Over half of A-shares suspend trading. Investors are banned from selling. RQFI drops 14% in two days.

AUG 24 A-shares have fallen almost 50% and reach a trough as capital markets go into free fall, partly spurred by uncertainty in China. Many A-shares are still not trading.

OCT 15 Investors' consensus is still bearish on China but analysts maintain A-shares will stabilise by year end and China's reforms will continue. RQFI gains 20% since 24 Aug.

Rachael Revesz joined etf.com in August 2013 as staff writer. Previously an investment reporter at Citywire, she has a background in writing content for retail financial advisors and has covered a wide range of subjects in finance. Revesz studied journalism at PMA Media, which has since merged with the Press Association. She also holds a B.A. in modern languages from Durham University, as well as CF1 and CF2 financial planning certificates from the CII.