(China Alert) Tracker fund: AUM on a golden platter

-The first mainland SOE tracker fund has been launched
-This is a key development for China’s SOE reform
-Further opportunities may be available to global managers

Update: China Universal launched a new fund – the CSI Shanghai SOE ETF – that raised RMB15.2bn (USD2.3bn). To put this into perspective, it is the third largest ETF fundraising in China ever. Retail investors currently make up just 5.3% of the shareholders but this is set to grow as the manager will sell the fund to the mass public. This isn’t the key point. The ETF is the first SOE tracker on the Mainland. Z-Ben Advisors believes that this fund draws a blueprint for more such regional and national ETFs. The opportunity to build these likely won’t be limited to domestic managers.

Talk about Chinese SOE reform is beginning to sound like a broken record but this new development is likely the start of something tangible. China Universal’s ETF is …

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