First independent Chinese issuer lists ETF on London Stock Exchange

  • Historic fixed income ETF issued by Fullgoal Asset Management
  • ETF tracks FTSE China Onshore Sovereign and Policy Bank Bond Index
  • ETF also set to list on Borsa Italiana
  • China onshore fixed income market is the world’s third-largest bond market
  • Cements LSEG’s position as partner of choice for Chinese issuers accessing European capital

London Stock Exchange today welcomes a new fixed income ETF from Fullgoal Asset Management (HK) Limited (Fullgoal), a leading Chinese investment firm. The Fullgoal FTSE China Onshore Sovereign and Policy Bank Bond 1-10 Year Index ETF, is the first ETF by an independent Chinese issuer in Europe and will track the FTSE China Onshore Sovereign and Policy Bank Bond Index, which is designed to reflect the performance of bonds denominated in RMB (CNY), issued by Chinese Government, China Development Bank, Agricultural Development Bank of China, The Export-Import Bank of China and circulated in mainland China.

FTSE Russell is a leading provider of China-focused indexes covering all Chinese share types and a range of asset classes, including equity, fixed income and real estate. As China continues to open its market to foreign investors, FTSE Russell is also offering market participants a range of benchmark choices to help them prepare for the inclusion of China A-shares in global portfolios.

Fullgoal is also expected to list the Fullgoal FTSE China Onshore Sovereign and Policy Bank Bond 1-10 Year Index ETF on Borsa Italiana later this week and further strengthens London Stock Exchange Group’s position as the partner of choice for Chinese issuers looking to access European and international capital. Earlier this month the Chinese government chose London to list the first Chinese sovereign RMB bond to be issued outside of China.

To mark the launch of this historic ETF, London Stock Exchange today welcomed Mr. Chen Ge, CEO of Fullgoal Fund Management Company Limited, Chairman of Board of Directors of Fullgoal Asset Management (HK) Limited to open trading in London.

Nikhil Rathi, Chief Executive of London Stock Exchange plc and Group Director of International Development said:

“Chinese issuers are increasingly looking to access European investors and today’s listing is significant as it is the first time a Chinese firm has listed an ETF independently in Europe. In choosing to list this ETF, which tracks an innovative FTSE Russell index, on both London Stock Exchange and Borsa Italiana, Fullgoal have shown that LSEG is the partner of choice for Chinese issuers looking to access European investor capital”.

Michael Chow, Head of International Business and Managing Director at Fullgoal Asset Management (HK) Limited said:

“We are delighted to be the first Chinese asset manager to list an ETF on London Stock Exchange. Chinese onshore fixed income market is the world’s third-largest bond market. Our Fund provides an avenue for overseas investors to access an otherwise not easily accessible market. We believe that, over time, RMB fixed income will become an essential asset class for global investors.”

The ETF listing comes as London has established itself as the leading offshore venue for RMB-denominated product issuance. The last year alone has seen important milestones reached in developing the China-London relationship including:

  • First Chinese sovereign RMB bond issued outside of China listed on London Stock Exchange
  • People’s Bank of China issued RMB 5 billion of short-term central bank notes in London – the first time it has done so outside China
  • Agricultural Bank of China listed $1billion dual currency green bonds in London, including a 600 million RMB-denominated tranche. This was the first international green bond issuance by a Chinese bank
  • China’s four major banks and China Development Bank have all listed bonds on London Stock Exchange
  • Year to date, we have seen 54 RMB bonds be issued on our markets, of 80 issued worldwide. These come from a wide range of issuers in terms of geography as well as international institutions and sovereigns
  • We have 9 RQFII ETFs providing direct exposure to Chinese A-share equities and fixed income markets, more than any other European platform. In addition, a further 9 ETFs offer direct exposure to China.

The Fullgoal FTSE China Onshore Sovereign and Policy Bank Bond 1-10 Year Index ETF is denominated in RMB and trades on London Stock Exchange in USD and EUR

For further information:

Media
Ed Clark - +44 (0)20 7797 1222
newsroom@lseg.com

Notes to editors:

About London Stock Exchange Group:

London Stock Exchange Group (LSE.L) is an international markets infrastructure business. Its diversified global business focuses on capital formation, intellectual property and risk and balance sheet management. LSEG operates an open access model, offering choice and partnership to customers across all of its businesses. The Group can trace its history back to 1698

The Group operates a broad range of international equity, ETF, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS (Europe's leading fixed income market); and Turquoise (a pan-European equities MTF). Through its platforms, LSEG offers market participants, including retail investors, institutions and SMEs unrivalled access to Europe’s capital markets. The Group also plays a vital economic and social role, enabling companies to access funds for growth and development.

Through FTSE Russell, the Group is a global leader in financial indexing, benchmarking and analytic services with approximately $10 trillion benchmarked to its indexes. The Group also provides customers with an extensive range of real time and reference data products, including SEDOL, UnaVista, XTF and RNS.

Post trade and risk management services are a significant part of the Group’s business operations. In addition to majority ownership of LCH, a multi-asset global CCP operator, LSEG owns CC&G, the Italian clearing house; Monte Titoli, a leading European custody and settlement business; and globeSettle, the Group’s CSD based in Luxembourg.

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