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BlackRock delisting China A-share ETF

BlackRock delisting China A-share ETF

BlackRock will be delisting its iShares MSCI China A International Index fund from the Hong Kong Exchanges this March.

Launched on 25th January 2016, the BlackRock ETF is a sub-fund of the iShares Asia Trust.

It primarily invests in A-Shares via the Stock Connect; and the RQFII Licence Holder’s Renminbi Qualified Foreign Institutional Investor investment quota.

‘The rationale for the fund closure is that the premise of the index, to provide modular exposure for the inclusion of China A-shares in global indices, no longer exists,’ a BlackRock spokesperson told Citywire Asia.

‘Following market and shareholder feedback, stock connect is now the privileged route by MSCI to achieve inclusion of A-shares into their broad indices, utilising a different universe of underlying constituents and a different index calculation methodology.’

The MSCI last year changed the methodology for the inclusion of A-share into its global indices. Now instead of using MSCI China A International Index, the emerging market index will include 222 China A large cap shares through Stock Connect.

Last February, Blackrock delisted its iShares CSI A-share Financials Index ETF, a synthetic fund that gave investors exposure to financial stocks listed on China’s domestic stock exchanges.

A few months later, Deutsche Bank Asset Management announced the closure of 16 Hong Kong-listed ETFs. 

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