The NASDAQ OMX Group, Inc. today announced that China’s first cross-border
exchange-traded fund (ETF), based on the NASDAQ-100 Index(R), has begun
trading on the Shanghai Stock Exchange. The Guotai NASDAQ-100
Exchange-Traded Fund (Symbol: 513100), sponsored by Guotai Asset
Management, was created so that investors in China could easily invest
in the largest and most liquid companies traded on The NASDAQ Stock
Market. The listing of this product marks the first exchange-traded
fund in China to provide access to the U.S. market.
Until now, investors in China have been able to access the U.S. market
but only through ordinary Qualified Domestic Institutional Investor
funds, most of which follow active strategies, are cumbersome to trade
and involve a lengthy redemption process. The Guotai NASDAQ-100
Exchange-Traded Fund significantly enhances the efficiency of
investment in U.S. securities for these investors. Additionally,
because the product trades on the secondary market like any ETF, prices
are transparent and transaction costs are low, making the product
appealing to institutional and individual investors alike.
The launch of the Guotai NASDAQ-100 ETF is a significant development
for the burgeoning exchange-traded product market in China. According
to BlackRock, Inc., an independent, global investment manager,
year-to-date inflows into Chinese equity ETPs increased 23.4 percent to
$937.4 billion.
“We applaud Guotai Asset Management for responding to increasing demand
among all classes of investors in China for a cross-border ETF,” said
NASDAQ OMX Vice President Robert Hughes. “The Guotai NASDAQ-100 ETF
enables individual and institutional investors in China to access 100
of the world’s largest and fastest growing companies — including
Baidu, Microsoft, Apple and Starbucks.”
The NASDAQ-100 Index, which includes 100 of the largest international
and domestic non-financial securities listed on NASDAQ, had a
cumulative price return of 170.32% during the 10 years ended December
31, 2012.
About NASDAQ OMX Global Indexes
NASDAQ OMX Global Indexes has been creating innovative, market-leading,
transparent indexes since 1971. Today, our index offering spans
geographies and asset classes and includes diverse families such as the
Dividend Achievers, Global, Nordic, Green Economy, Sharia and Commodity
Indexes. We continuously offer new opportunities for financial product
sponsors across a wide-spectrum of investable products and for asset
managers to measure risk and performance. NASDAQ OMX Global Indexes
also provides custom index services and design solutions to selected
financial organizations. For more information about NASDAQ OMX Global
Indexes, visit indexes.nasdaqomx.com.
Daily index values, weightings and historical data for NASDAQ OMX
indexes are available via NASDAQ OMX Global Index Watch and the NASDAQ
OMX Global Index Data Service.
About NASDAQ OMX Group
The inventor of the electronic exchange, The NASDAQ OMX Group, Inc.,
fuels economies and provides transformative technologies for the entire
lifecycle of a trade – from risk management to trade to surveillance to
clearing. In the U.S. and Europe, we own and operate 23 markets, 3
clearinghouses and 5 central securities depositories supporting
equities, options, fixed income, derivatives, commodities, futures and
structured products. Able to process more than 1 million messages per
second at sub-40 microsecond speeds with 99.99+% uptime, our technology
drives more than 70 marketplaces in 50 developed and emerging countries
into the future, powering 1 in 10 of the world’s securities
transactions. Our award-winning data products and worldwide indexes are
the benchmarks in the financial industry. Home to over 3,300 listed
companies worth more than $6 trillion in market cap whose innovations
shape our world, we give the ideas of tomorrow access to capital today.
Welcome to where the world takes a big leap forward, daily.
