db X-trackers, the exchange-traded fund (ETF) platform of Deutsche Bank, has cross-listed five Chinese equity sector ETFs on Frankfurt’s Deutsche Börse. The funds, which already maintain listings on the Hong Kong stock exchange, provide European investors with targeted exposure to key segments of China’s CSI 300 Index.

db X-trackers has listed five ETFs offering targeted exposure to various segments of the China CSI 300 index, such as banks.

The sectors covered are banks, consumer discretionary, energy, health care and real estate. Together, these sectors constitute approximately 50% of the entire broad-market CSI 300.

The CSI 300 tracks the performance of the 300 most representative A-shares listed on the Shanghai and Shenzhen stock exchanges, as measured by a combination of market capitalisation and liquidity. A-shares are Chinese-incorporated companies traded in yuan (CNY) on domestic exchanges.

The funds have a variety of potential uses and will appeal to a cross-section of investors, ranging from active traders deploying long/short strategies to longer-term investors looking to tactically tilt portfolios in the direction of these sectors. For investors with core long CSI 300 positions, the funds could also prove useful shorts to temporarily hedge out exposure should specific sector fundamentals deteriorate.

Manooj Mistry, Deutsche Bank’s head of exchange-traded products, EMEA, commented: “db X-trackers has played a key part in opening up China’s A-shares market to foreign investors, first with the listing of a series of A-shares ETFs in Hong Kong, then with the cross-listing last year to London of the db x-trackers CSI 300 UCITS ETF, and now with the cross-listing from Hong Kong to Frankfurt of specific sector ETFs on the CSI 300. This will make it much easier for European investors to trade Chinese equity exposure.”

The db X-trackers CSI 300 UCITS ETF (XCHA), which is cross-listed on the London Stock Exchange, Deutsche Börse, and Borsa Italiana, now has close to £500 million in assets under management, making it one of the most successful European-listed trackers of China’s A-shares equity market.

“China, and emerging markets in general, continue to be popular with investors. Our aim is to offer a wide choice of products that provide efficient market exposure, which is why we now offer more than sixty emerging markets products,” added Mistry.

The funds are synthetically replicated via an over-collateralised swap.

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