State Street Global Advisors (SSGA) has launched a Chinese government bond ETF, a segment of the market that has seen significant demand this year.
The SPDR Bloomberg Barclays China Treasury Bond UCITS ETF (CHGT) is listed on the Deutsche Boerse and Boerse Frankfurt with a total expense ratio (TER) of 0.19%.
CHGT tracks the Bloomberg China Treasury 100BN index, which launched in June 2021 and offers exposure to the performance of renminbi-denominated Chinese bonds.
To be eligible for inclusion, debt instruments must have a minimum outstanding volume of R100bn and a maximum remaining maturity of a year.
Furthermore, only bonds from mainland China that are traded on the China interbank bond market are considered for inclusion.
The arrival of CHGT follows the launch of a well-received Chinese sovereign debt ETF in April, the iShares China CNY Govt Bond UCITS ETF (CGBI), which broke through $1bn assets in just four months.