InvestmentsApr 1 2015

China Construction Bank launches first UK ETF

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China Construction Bank launches first UK ETF

The launch of the first UK-domiciled ETF is a welcome step for investors, the chief executive of the Investment Association has said.

Daniel Godfrey said the news of China Construction Bank International listing and trading the fund on the London Stock Exchange was a vindication of the UK’s financial sector.

He said: “The launch of the first UK-domiciled ETF shows that with the right tax and regulatory environment, the UK has become an attractive and competitive fund domicile.

“It also demonstrates that the targeted measures introduced by the government under its investment management strategy are succeeding in attracting investors to UK funds, leading to a chain of wider economic benefits.”

The Commerzbank CCBI RQFII Money Market Ucits ETF is issued in partnership with China Construction Bank, Euroclear Bank and Commerzbank.

Hu Zhang Hong, chief executive of CCB International, said: “London has long been a champion in promoting initiatives and enhancing infrastructure, and has become a vibrant renminbi centre.”

Adviser views

Speaking about the launch of the first UK-domiciled ETF, Sebastian Van Mook, a financial adviser with Shrewsbury-based Abacus Associates, said: “It is always good to have an extra string to your bow. ETFs have their place with the right client but I find very few clients fit the profile for them. It is not normal, and most of my clients are very traditional investors.”