UBS Asset Management has launched a China A-Shares ETF offering exposure to the onshore Chinese equity market.

The UBS ETF MSCI China A SF UCITS ETF (CNUA) has listed on the London Stock Exchange, SIX Swiss Exchange and Deutsche Boerse with a total expense ratio (TER) of 0.30%.

Synthetically replicated, CNUA tracks the MSCI China A index which is comprised of large and mid-cap Chinese securities listed on the Shanghai and Shenzhen exchanges.

Last year, MSCI increased the representation of China A-Shares in the MSCI Emerging Markets index to 4%.

UBS said the reason for the launch is because of China’s weight within emerging markets, it should be treated as a standalone allocation of its own.

UBS seeds BlackRock development bank debt ETF

Andrew Walsh (pictured), head of ETF & passive specialists, UK & Ireland at UBS AM, said in a statement: "China’s significant role in the global economy means allocations to the country are no longer a niche investing approach.

“Access to Chinese equities is of significant value to ETF investors seeking to augment and diversify their portfolios into a critical source of potential growth.”