BlackRock has made a number of changes to its iShares CSI 300 A-Share Index ETF, including the reduction of the management fee, the completion of the fund’s transition to physical and renaming the fund.
The management fee has been reduced to 0.38% from 0.99% per annum, making it the cheapest A-share ETF in Hong Kong.
The fund, iShares CSI 300 A-Share Index ETF, is renamed as iShares Core CSI 300 Index ETF, as part of its inclusion into APAC Core series.
The physical ETF invests in the China A-share market through BlackRock’s RQFII quota and the Stock Connect schemes between Hong Kong and China.
Like the rest of the series, RMB and USD trading counters, including 82846 and 9846 respectively, have been added to the fund, allowing investors to manage their trading activities in the currency of their choice.
The iShares Core CSI 300 Index ETF seeks to replicate the performance of the CSI 300 Index before fees and expenses.
The index is composed of 300 large and mid-cap stocks listed on the Shenzhen and Shanghai stock exchanges, providing a diversified and broad coverage of China onshore equities.
Commenting on the changes, Susan Chan, head of ETF and index investments Asia Pacific, said: ‘We are delighted to announce the addition of the iShares Core CSI 300 Index ETF to our APAC Core series, at a very competitive price, providing Asian investors with another low cost, quality exposure.
‘This Hong Kong fund develops our Asia Pacific ETF offering.
'The CSI 300 Index is one of the most widely referenced benchmark indices in China and we believe the index will increase in importance as the onshore benchmark of choice, as China continues expanding and encouraging international investors’ participation in its domestic capital markets.’
BlackRock iShares, a global leader in exchange-traded funds, had more than $1 trillion in assets under management as of December 31, 2016.