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| Thursday, 21 May 2015, 17:37 HKT/SGT | |
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| E Fund HK Product Became the Largest RQFII Bond ETF in the US Market 6 Months after Its Debut |
HONG KONG, May 21, 2015 - (ACN Newswire) - E Fund Management (Hong Kong) Co., Ltd. ("E Fund HK"), the Hong Kong subsidiary of E Fund Management Co., Ltd., is pleased to announce that the China Commercial Paper ETF, jointly launched and managed with KraneShares, has been operated smoothly since its establishment, and become the largest RQFII bond ETF in the US market.
Listed on 3 December 2014 on the New York Stock Exchange (NYSE), the ETF, seeking to deliver yields from investment grade commercial papers issued in Mainland China, is the first RQFII commercial paper ETF in the United States and the first short term RQFII bond ETF with interbank market access outside China. After half a year's operation, the ETF has gradually earned recognition from US investors. Especially during recent period when Renminbi maintains stable, the ETF has been subscribed constantly, with current asset of over USD50 million, wherein asset under management (AUM) of this year rapidly increased 19 million with an accumulated volume of transactions within one week exceeding 500,000, becoming the most liquid product among its peers. With the outstanding performance, the product was recommended by ETF.com as the most innovative bond ETF.
Ms. Gaohui Huang, CEO of E Fund HK, stated, "Chinese onshore bond market has developed rapidly over the last decade, and has become one of the largest markets in the emerging economies. Half a year after its debut, the ETF already grows into the largest RQFII bond ETF in the US market, introducing a new way into Chinese bond market for US money market funds with low interest rate and bank deposit market, becoming an indicator reflecting US investors' interest in Renminbi."
"China money market can achieve a high return, which can't be achieved by other funds," said Mr. David Zhang, E Fund HK chief investment officer and co-portfolio manager of the Fund. "Chinese onshore commercial paper market is very liquid, with more than $270bilion USD outstanding amount and an average $3billion USD daily trading volume. As investors have great interest in Chinese market, the product will continue to provide a superior investment option for US investors." He added.
Mr. Jonathan Krane, CEO of KraneShares, said, "China has a very flat yield curve with relatively high interest rates versus the US, specifically in maturities under one year. For example, over the past twelve months China commercial paper returned 5.85%+ in USD compared to US commercial paper at less than 0.20%, that's a 5.65% difference. E Fund Management is the largest fixed income manager in China and the second largest RQFII manager globally. Our cooperation, launching the ETF on the New York Stock Exchange, has been recognized by the local market and achieved outstanding performance, which further proves it is a right choice to cooperate with E Fund, because (capital/ investment ) turning to emerging markets is inevitable."
About E Fund Management (Hong Kong) Co, Ltd.
E Fund Management Co., Limited ("E Fund") was established in April, 2001, operating subsidiaries in Guangzhou, Beijing and Shanghai. As of 31 December, 2014, the Company's asset under management amounted to more than RMB 430 billion. Since its establishment, the Company has been insisted on the trustworthy and disciplined management style, the unique investment philosophy and fundamental research driven investment approach. Under its strict management, with its standardized operation and brilliant investment performance, the Company is highly recognized by the market. E Fund has grown tremendously and ascended to the top industry performance rankings, and received numerous industry awards in recent years. E Fund has constantly been named into the Morningstar Best Fund Manager list; and has also won the most a lot "Golden Bull" awards for being the best fund manager from China Securities Journal - the dominant domestic securities publication.
E Fund Management (HK) Co., Limited ("E Fund HK"), a wholly owned subsidiary of E Fund, was incorporated in Hong Kong in August, 2008. E Fund HK is licensed for Type 1 (dealing in securities), Type 4 (advising on securities) and Type 9 (asset management) regulated activities by the Securities and Futures Commission of Hong Kong. As the global investment and business platform for the parent company, E Fund offers overseas investment products as well as to provide better client service to its international clients.
About KraneShares
KraneShares, a product of Krane Funds Advisors, is focused on serving global investors with ETFs for the next-wave of China's development. Founded in 2011, our New York based firm offers proprietary ETFs constructed to give US and global investors broad, diverse and quality.
Disclaimer:
Investment involves risk. The Fund is not authorized by the Securities and Futures Commission of Hong Kong and not available to the public of Hong Kong.
Topic: Press release summary
Sectors: Daily Finance
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