{"id":457419,"date":"2010-03-22T07:06:00","date_gmt":"2010-03-22T11:06:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/new-chinese-etf-could-send-waves-of-chinese-investors-into-us-stocks-22-03-2010"},"modified":"2010-03-22T07:06:00","modified_gmt":"2010-03-22T11:06:00","slug":"new-chinese-etf-could-send-waves-of-chinese-investors-into-u-s-stocks","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/457419","title":{"rendered":"New Chinese ETF Could Send Waves of Chinese Investors Into U.S. Stocks"},"content":{"rendered":"

\"beijing<\/p>\n

A Chinese investment management firm is about to launch China’s first U.S. S&P 500 exchange traded fund (ETF), for domestic Chinese investors.<\/p>\n

Due to past investment restrictions, this ETF is sure to be a goldmine for the firm as it suddenly opens up the U.S. stock market to Chinese savings.<\/p>\n

Index Universe:<\/a><\/p>\n

Bosera Asset Management, a Shenzhen, China-based firm with $30.8 billion under management, will add to the $1 trillion now indexed to the S&P 500 with its new ETF, S&P said in a statement on Thursday. The S&P 500 is the world’s most widely used index. The biggest ETF, the SPDR S&P 500 ETF (NYSEArca: SPY), had $70.23 billion in assets at the end of February, according to data from the National Stock Exchange.<\/p>\n

“A lot of investors in the 500 come from outside the U.S., whether they use futures, domestically listed ETFs, U.S.-listed ETFs or other measures,” Alexander Matturri, executive managing director at S&P Indices, said in a telephone interview. “The liquidity builds on itself.”<\/p>\n

Note that Bosera already has nearly $31 billion under management vs. $70 billion for the largest U.S.-based S&P 500 ETF. Given the massive glut of Chinese savings, plus the rapidly growing domestic wealth, it’s thus not inconceivable that one day a Chinese S&P 500 ETF could be as large as the SPDR U.S.-based ETF mentioned in the excerpt above. That means a lot of Chinese liquidity, pent up for many years, could start pouring into U.S. stocks as international investment opportunities are expanded for Chinese citizens.<\/p>\n

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