Deutsche unveils 11 China A-share ETFs

Deutsche Bank has unveiled 11 China A-share ETFs in Hong Kong, providing exposure to range of sectors.

The funds track the performance of 10 CSI300 sector indices, while one fund tracks the main CSI300 benchmark.

Sector exposure includes banks, real estate, materials, consumer discretionary, health care, transportation, energy, utilities, industrials and financials.

The main index replicates the performance of the 300 most representative A-shares listed on the Shanghai and Shenzhen stock exchanges.

The ETFs are Ucits III compliant, allowing them to be sold throughout the European Union. The Ucits framework also restricts the swap exposure and therefore counterparty risk to 10% of the fund's net asset value.

The bank places collateral against the value of the swap exposure on a daily basis, to further mitigate risk.

Deutsche Bank head of Asia Marco Montanari says: "In addition, db x-trackers' ETFs are domiciled in Luxembourg and can represent a tax efficient investment option for investors compare with other offshore ETFs, especially those in the US, which may be taxed up to 30 percent on their dividends."

The 11 ETFs are listed on the Stock Exchange of Hong Kong and have an annual fee of 0.50 percent, which Deutsche says is less than half the fee cost of other China A-share ETFs listed in Hong Kong.

The funds will be released in Germany following the initial Hong Kong listing.