- Many China-related ETFs rely on a quota system - the renminbi qualified foreign institutional investor (RQFII) scheme - through which China allows access to its stocks traded on the mainland. High inflows into RQFII funds - AUM have nearly doubled this year to $12.6B - are rapidly exhausting the quotas, and Deutsche Bank is rationing U.S. access to those China ETFs - ASHR and ASHS - using the RQFII, and has temporarily closed similar funds to new money from European clients.
- Synthetic ETFs which track Chinese stocks using derivatives have not been affected.
- Hong Kong-based CSOP Asset Management says more than 96% of its quota has been used up and it's no longer taking money for its flagship China equities fund, the largest RQFII ETF.
- China A-shares ETFs: ASHR, PEK, CNXT, ASHS, CHNA, KBA
- Broad China ETFs: FXI, PGJ, GXC, YINN, FXP, YANG, MCHI, XPP, YAO, YXI, CHXF, CN, FCA