Solactive, in Collaboration with Shenzhen Securities Information Co. (SSIC) is Pleased to Support the Launch of the Invesco ChiNext 50 UCITS ETF Tracking the ChiNext 50 Capped Index, which is Calculated and Administered by Solactive
Driven by structural reforms and policy support, China’s new economy fosters growth across multiple sectors, including EVs, solar energy, industrial automation, medical devices and fintech. The Invesco ChiNext 50 UCITS ETF is the first European-listed ETF tracking this flagship index and provides investors liquid and transparent access to the ChiNext market, which is the innovation segment of the Shenzhen Stock Exchange (SZSE). Solactive is privileged to be chosen by SSIC, a wholly owned subsidiary of SZSE responsible for the SZSE Index and CNI Index brands, and Invesco, the world’s fourth largest ETF issuer by assets under management, to act as the calculation agent and administrator under the European Benchmark Regulation for the underlying ChiNext 50 Capped Index.
The original ChiNext 50 Index comprises the 50 most liquid stocks from the 100 largest stocks on the ChiNext market of SZSE, based on six-month trading volume, using a free-float market cap weighting, with semi-annual review. It serves as a flagship index for the ChiNext market with no explicit sector constraints.
The ChiNext 50 Capped Index is a UCITS-compliant version of the ChiNext 50, containing the same constituents, but with individual security caps at 8%. Moreover, those securities with weights exceeding 4.5% are collectively capped at 38%. The index undergoes quarterly rebalancing and is calculated and administered by Solactive.
The Invesco ChiNext 50 UCITS ETF listed on 21 June 2024 on major European exchanges with ticker symbol CN50.
Timo Pfeiffer, Chief Markets Officer at Solactive, commented: “We are thrilled to have entered an MOU with Invesco and SSIC, and be part of the collaboration that brings the rapidly growing China New Economy to the European Market. Over the years we have been expanding our footprint all over the world, and the fast-developing investment market in China has increasingly become a particular focus for us. To be working alongside such esteemed institutions like Shenzhen Stock Exchange and Invesco honors our commitment to bringing the most innovative solutions to investors. We highly appreciate the trust put into us and look forward to continuously supporting the China related investment landscape, inside and outside of China.”
The head of the Fund Management Department of Shenzhen Stock Exchange, comments: “Internationalization is an important strategic direction for ETF development, including not only layout of cross-border products to provide opportunities for domestic investors to invest overseas, but also international promotion of domestic indices to provide opportunities for overseas investors to invest in Chinese assets.”