Chinese Region

Chinese Region Specific

China

Zhejiang province ETF

Guangzhou-based ETF provider E Fund is listing a new fund that invests in companies from Zhejiang province. 

The E Fund SI Zhejiang New Economic Engine ETF will track an index called the CSI Zhejiang New Economic Engine Index. But the name gives the impression that there’s more going on that there actually is. 

The index is made up of Shanghai and Shenzhen-listed companies that are headquartered in Zhejiang province. Real estate companies are removed. 

And that’s it… 

Analysis – A tech ETF

The idea of a regional ETF within a country may sound weird. Can you imagine State Street listing a Massachusetts ETF? Or BMO listing a Quebec ETF? 

But the idea makes sense. 

Zhejiang is the province where Alibaba is based. It gets more of its GDP from tech and digitisation than any other province in China, data from the IMF indicates. Most big listed companies based in Zhejiang are in tech. 

Nanhua listed a similar ETF to this in late-2018. From what we’re seeing it didn’t gather a lot of assets.