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Increasing US demand for China ETFs spurs rationing

The X-trackers Harvest CSI 300 China A-Shares ETF at Deutsche Asset & Wealth Management recently saw a US$130m surge in the span of five days, nearly exhausting its Chinese government-imposed A-share purchasing quota, Bloomberg reported. Mainland stocks recently saw their largest quarterly gain since 2009, rising 15% in the three months ending September 30. This growth is leading to increased demand from abroad, as providers such as BlackRock and CSOP Asset Management are currently attempting to open up China’s more than US$4 trillion A-shares market to US ETF investors. 

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