iSHARES FTSE CHINA A50 ETF (2823) CELEBRATES 20 YEARS

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20-YEAR HISTORY

Launched in 2004, the iShares FTSE China A50 ETF has been a gateway for global investors to access onshore China equities. Over the past 20 years, China's financial system and capital markets have undergone change, and the iShares FTSE China A50 ETF has evolved alongside.

As we celebrate its 20th anniversary, the iShares FTSE China A50 ETF continues to stand out for its quality innovation and liquidity; a cost-effective choice for investors looking to tap into China's equity market.

FUND HIGHLIGHTS

The iShares FTSE China A50 ETF seeks to track the investment results of an index composed of the 50 largest companies in mainland China, trading on the Shanghai and Shenzhen Stock Exchanges.

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Quality innovative product

For the past two decades, the iShares FTSE China A50 ETF has been at the forefront of innovation, adapting to China's dynamic financial and capital markets, providing investors with convenient and transparent access to onshore China equity markets.

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Large AUM with high liquidity

The iShares FTSE A50 China ETF has more than US$3 billion assets under management (AUM) and an 30-day average daily volume (ADV) of US$42 million1. This makes it one of the largest China A-Share ETFs listed outside mainland China that offers high liquidity and a tight bid-offer spread.
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For global investors to access onshore China equities

The iShares FTSE China A50 ETF has been designed to enable international investors to access large Chinese securities in the A-Share market by addressing constraints faced by international investors such as licensing and quota limitations, ensuring a seamless and efficient investment experience into onshore equities.

KEY FUND FACTS

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Fund information
Fund nameiShares FTSE China A50 ETF
Ticker2823 HK (HKD), 82823 HK (RMB)
SEDOLB046M96 (HKD), BYSYN68 (RMB)
ISINHK2823028546 (HKD); HK0000343787 (RMB)
Benchmark IndexFTSE China A50 Index
Management fee (p.a.)0.35%
Inception date15 Nov 2004
Net assets (as of 22 Oct 2024)RMB 21,799,786,852
ExchangeHong Kong Stock Exchange
Asset classEquity
Trading board lot size100 (for each counter)
Trading currencyHKD, RMB
Distribution frequencyAnnually
VIEW FUND DETAILS
DOWNLOAD FUND FACTSHEET

Fund sector exposure
Fund sector exposure chart
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Fund top 10 holdings
Name of holdingsWeight (%)Sector
KWEICHOW MOUTAI LTD A10.84Consumer Staples
CONTEMPORARY AMPEREX TECHNOLOGY LT6.63Industrials
CHINA MERCHANTS BANK LTD A4.46Financials
CHINA YANGTZE POWER LTD A4.15Utilities
PING AN INSURANCE (GROUP) OF CHINA3.76Financials
BYD LTD A3.38Consumer Discretionary
WULIANGYE YIBIN LTD A3.06Consumer Staples
INDUSTRIAL AND COMMERCIAL BANK OF CHINA LTD A2.86Financials
AGRICULTURAL BANK OF CHINA LTD A2.33Financials
ZIJIN MINING GROUP LTD A2.22Materials

Source: BlackRock; as of 23 October 2024. Allocations are subject to change. Due to rounding, the total may not be equal to 100%. The Fund is actively managed and its composition will vary. Holdings shown are for illustrative purposes only and should not be deemed as a recommendation to buy or sell the securities listed. Fund details, holdings and characteristics are as of the date noted and subject to change. Holdings subject to change. 

ABOUT THE INDEX

About the FTSE China A50 Index2:

  • Convenient access to China A-Share exposure: Used by multiple ETF issuers and backed by liquid derivatives, the FTSE China A50 Index not only provides investors access to the 50 largest Chinese securities in the A-Share market, but also acts as a tool for portfolio diversification.3
  • Long standing benchmark: Launched in 2003, it is one of the first China A-Share indices offered by an international index provider. FTSE China A50 Index has 20 years of experience tracking the performance of the 50 largest Chinese securities listed on Shanghai Stock Exchange and Shenzhen Stock Exchange.
  • Continued evolution since index inception: The FTSE China A50 Index has evolved with China’s market development including the incorporation of Foreign Ownership Level (FOL) in March 2022. This inclusion resulted in reducing financial sector constituents from 37% to 28% of the total index, resulting in better industry diversification of the index.2
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Index characteristics
IndexFTSE China A50 Index
No. of constituents50
CurrencyCNH
Market capitalization (CNH million)4,764,090
RebalancingQuarterly
Bloomberg TickerXINA50NC
Launch date13 December 2003

Source: FTSE Russell, as of 30 September 2024.

WHY iSHARES FOR CHINA INVESTING

  • iShares is a global leader in China A50 ETFs with long-term expertise in China investing. With more than US$3 billion of assets under management, the iShares FTSE A50 China ETF is one of the largest China A-Share ETFs listed outside mainland China.4
  • iShares provides investors choice with a broad suite of China ETFs. We are committed to helping investors access China’s onshore markets to meet their investment objectives over the past two decades with our local and global ETF offerings across equities and fixed income asset classes.
  • iShares offers investors easy access to China exposure through index investing with ETFs. Through index investing, investors are able to access the 50 largest Chinese securities in the A-Share market, while seeking to minimize risk and capture opportunities by choosing an established benchmark from index providers.

  • IMPORTANT: Investment involves risk, including the loss of principal. Investors should refer to the Prospectus and Key Facts Statement of the iShares FTSE China A50 ETF (the “ETF”) for details, including the risk factors. Investors should not base investment decisions on this marketing material alone. Investors should note:

    IMPORTANT: Investment involves risk, including the loss of principal. Investors should refer to the Prospectus and Key Facts Statement of the iShares FTSE China A50 ETF (the “ETF”) for details, including the risk factors. Investors should not base investment decisions on this marketing material alone. Investors should note:
    • The ETF aims to provide investment results that, before fees and expenses, closely correspond to the performance of the FTSE China A50 Index (“the Underlying Index”).
    • Generally, investments in emerging markets, such as the A Share market, may involve increased risks such as liquidity risks, currency risks/control, political and economic uncertainties, legal, regulatory and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility. The A Share market may be more volatile and unstable than those in the more developed markets. The ETF’s exposure is concentrated in the PRC and may be more volatile than funds adopting a more diversified strategy.
    • The ETF is subject to tracking error risk, which is the risk that its performance may not track that of the Underlying Index exactly.
    • The ETF is subject to restrictions and requirements applicable to QFII / RQFII investment, and the applicable laws, rules and regulations in the PRC, which are subject to change and such change may have potential retrospective effect. The ETF may be unable to invest via the QFII/RQFII status of each QFII/RQFII Licence Holder including if the approval of the relevant QFII/RQFII Licence Holder is revoked/terminated or otherwise invalidated as the ETF may be prohibited from trading of relevant securities and repatriation of the ETF’s monies, or if any of the key operators (including the QFII/RQFII Custodians and PRC broker) is bankrupt or in default and/or is disqualified from performing its obligations (including execution or settlement of any transaction or transfer of monies or securities).
    • The relevant rules and regulations on the Stock Connect are subject to change. The Stock Connect is subject to quota limitations. Where a suspension in the trading through the programme is effected, the ETF’s ability to invest in A shares through Stock Connect will be adversely affected.
    • The ETF currently does not make provision for withholding tax on capital gains (“CGT”) arising from its investment via CAAPs, QFII or RQFII on or after 17 November 2014, or its investment via Stock Connect. There are risks and uncertainties associated with the current PRC tax laws, regulations and practice in respect of capital gains realized on the ETF’s PRC investments, which may have retrospective effect. Any increased tax liabilities on the ETF may adversely affect its value, and the resultant tax liability would be eventually borne by investors.
    • All units will receive distributions in the base currency (RMB) only. The Manager may at its discretion pay dividends out of capital or effectively out of capital which amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of dividends out of or effectively out of the ETF’s capital may result in an immediate reduction of the ETF’s NAV per unit.
    • In the event that a unitholder has no RMB account, the unitholder may have to bear  the fees and charges associated with the conversion of such dividend distributions from RMB to HKD or any other currency; and (ii) other bank or financial institutional fees and charges associated with the handling of the distribution payment in currencies other than RMB. Unitholders are advised to check with their brokers regarding arrangements for distribution.
    • The trading price of the units of the ETF on the SEHK is subject to market forces and may trade at a substantial premium/discount to the ETF’s NAV.

    • The ETF is subject to securities lending transactions risks. In particular, the borrower may fail to return the securities in a timely manner and the value of the collateral may fall below the value of the securities lent out.

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