Money
Allianz ETF gets green light
By Chua Kong Ho (China Daily)
Updated: 2010-04-23 11:54
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SHANGHAI - Allianz SE's China joint venture fund management company has received approval from the Shanghai Stock Exchange to develop an exchange-traded fund (ETF) tracking Chinese commodities stocks.
The ETF will track an index of 50 Chinese stocks with large market capitalization from the energy, agricultural and industrial materials industries, Shanghai-based Guotai Jun'an Allianz Fund Management Co said on Thursday.
The index "will provide a benchmark for performance of commodities stocks and also serve as a barometer of investor expectations for commodity prices", the company said.
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A measure of energy producers on the CSI 300 Index has declined 17 percent this year, the worst performer among the 10 industry groups and outpacing an 11 percent drop by the broader market.
The Shanghai Stock Exchange will try to introduce ETFs that track foreign indexes this year, Chairman Geng Liang said in March. ETFs are designed to mimic the performance of market indexes and are traded like stocks on an exchange.
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