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Invesco
Investment manager Invesco has just launched an exchange-traded fund in Europe that offers investors access to China’s long-term growth potential.
The fund will provide investors with access to the ChiNext 50 index, which reflects the performance of the 50 largest and most liquid stocks listed on the ChiNext market of the Shenzhen Stock Exchange, the company said in a statement. The Invesco ChiNext 50 UCITS ETF, which targets Chinese companies, will follow a capped version of the index to reduce concentration risk and ensure sufficient diversification.
“We are pleased to work with Invesco GreatWall, a mainland China investment management joint venture and leading firm specialising in the China market, and partner with the Shenzhen Stock Exchange to launch a UCITS ETF tracking the ChiNext 50,” said Gary Buxton, head of EMEA and APAC ETF and index strategy at Invesco.
“While the index has no explicit sector requirements or restrictions, investors can expect a natural emphasis on technology, industrials and healthcare. The fund will invest in companies involved in innovative and fast-growing sectors such as artificial intelligence, electric vehicles, renewable energy, robotics, automation and biotechnology,” added Chris Mellor, head of EMEA equity ETF product management at Invesco.
According to the company, the ETF will employ a replication approach that seeks to hold all of the securities in the index in their respective proportions whenever possible, but if this is not reasonably possible, the fund will employ a sampling approach.
