Euroclear, Deutsche Bank and BBH back Chinese ETF launch in Europe

The first ETF by an independent Chinese issuer in Europe has gone live
By Paul Walsh
Fullgoal Asset Management has selected Deutsche Bank’s custody services for its new RMB exchange traded fund (ETF) listed across Europe, which will be settled by Euroclear.

The launch represents the first ETF by an independent Chinese issuer in Europe, which went live on the London Stock Exchange today.

Under the arrangement with Deutsche Bank, Fullgoal will receive custody services for its newly launched FTSE China Onshore Sovereign and Policy Bank Bond Fund.

The FTSE fund is a one to ten year index ETF designed to reflect the performance of the bond index against the performance of bonds denominated in RMB issued by the Chinese government and a handful of other Chinese banks.

Brown Brothers Harriman will provide global custody fund accounting and fund administration for this ETF which was listed on the Luxembourg Stock Exchange on 15 June, the London Stock Exchange on 21 June and Borsa Italiana on 23 June.

“We believe that China will continue to be a market of increasing interest to global investors, and working with partners such as Fullgoal and Brown Brothers Harriman will give those investors peace of mind in ensuring that they can access the market easily,” said Mark Law, co-head of investor services – Asia Pacific, global transaction banking at Deutsche Bank.

Fullgoal revealed that it is in collaboration with Euroclear on the same bond which will be listed and traded in RMB, US dollars and the Euro on the London Stock Exchange and will settle directly on Euroclear bank.

“We are very proud to have been part of this exciting collaboration with Fullgoal Asset Management,” said Mohamed M’Rabti, deputy head of FundsPlace, Euroclear.

“This builds further momentum following our landmark RMB ETF launch last year, underpinning Euroclear’s 25 years of experience in the Asian market and supporting our wider Asia strategy.”