Barclay has just launched a new ETF listed on the Hong Kong exchange that gains access to China A-shares. What’s interesting to me is the broad underlying exposure to the broad CSI 300 Index. This index represents the performance of the top 300 stocks listed on Shanghai and Shenzhen stock exchange which is representing 70% of the total market cap of both exchanges. Another more interesting development is the counterparty risk is capped at 10% of the NAV per counterparty. According to the webpage, the counterparty exposure is :

10.9% Citigroup Global Markets Holdings Inc.
9.5% UBS AG London Branch
8.0% ABN-AMRO Bank N.V.
7.3% Credit Suisse, Nassau Branch

Actually I am puzzled why the figures don’t add up to 100%.

Note, this ETF is not approved by MAS because Hong Kong exchange is not under Singapore’s jurisdiction. Invest at your own risk. For more information, http://www.ishares.com.hk/web/hk/en/product/overview/2846.jsp