Market Vectors' ChinaAMC A-Share ETF (PEK -2.7%) - after three years in existence - finally began buying A-shares today after bringing on China Asset Management Limited as a partner. Previously, the ETF used derivatives to get exposure to A-shares - causing the fund to trade at premiums and discounts to NAV the way a closed-end fund would.
A spokesman says the quota obtained by the fund's partner is for about $164M of stock. The ETF currently has about $29M in AUM.
The PEK becomes the 2nd ETF to directly hold A-shares following the November launch of Deutsche's China A-shares Fund (ASHR -0.2%). The door continues to creak open.
The closed-end fund CAF also owns A-shares.
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