Deutsche Asset & Wealth Management (DeAWM) has joined forces with Hong Kong-based Harvest Global Investments to launch first RQFII product in Europe, according to Asia Asset Management.
Currently, DeAWM is managing the China A-Shares ETF listed in Europe that has approximately US$900 million of assets under management.
Due to the substantial demand in China A-shares investment products, DeAWM and Harvest will offer European investors with the first exclusive RQFII product with access to China A-shares.
Peng Wah Choy, CEO of Harvest, was quoted by Asia Asset Management, saying: "With our expertise to manage the largest China A-shares physical ETF in the world, we are excited to expand the RQFII ETFs to the US and Europe as well.
"The successful partnership for the US RQFII product has laid a solid foundation for DeAWM and Harvest to further develop our business in Europe," Choy added.
Marco Montanari, head of passive asset management Asia Pacific of DeAWM, said: "Hong Kong RQFII products cannot be publicly offered to US and European investors. These investors will be instrumental for the opening of the China market."
With a history of over 12 years, the European ETF market had gathered more than US$380 billion in AUM, which is over twice the size of the Asia-Pacific ETF market. Out of the 1,336 ETFs listed in Europe, only 13 are focused on China.