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Chinese Region Specific

China

Zhejiang province ETF

Guangzhou-based ETF provider E Fund is listing a new fund that invests in companies from Zhejiang province. 

The E Fund SI Zhejiang New Economic Engine ETF will track an index called the CSI Zhejiang New Economic Engine Index. But the name gives the impression that there’s more going on that there actually is. 

The index is made up of Shanghai and Shenzhen-listed companies that are headquartered in Zhejiang province. Real estate companies are removed. 

And that’s it… 

 

Analysis – A tech ETF

The idea of a regional ETF within a country may sound weird. Can you imagine State Street listing a Massachusetts ETF? Or BMO listing a Quebec ETF? 

But the idea makes sense. 

 

Zhejiang is the province where Alibaba is based. It gets more of its GDP from tech and digitisation than any other province in China, data from the IMF indicates. Most big listed companies based in Zhejiang are in tech. 

Nanhua listed a similar ETF to this in late-2018. From what we’re seeing it didn’t gather a lot of assets.

 


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Bernie Thurston

Bernie Thurston is the founder and CEO of Ultumus, a leading provider of ETF and index data, calculation, and workflow solutions. With over 20 years of experience in financial technology, Bernie has been at the forefront of index and ETF innovation since 2003.

His finance career began at Markit, where as Managing Director for Equities he designed and developed products for index and ETF composition and dividend forecasting from 2003 to 2011. He then founded and led DeltaOne Solutions as Managing Director, building it into a global provider of index and ETF trading data and technology services. The company managed over 100,000 multi-asset class products before being acquired by Markit in 2015.

Following the acquisition, while working for an ETF issuer, Bernie identified fundamental issues in how index and ETF data was represented across the industry. This led him to found Ultumus in 2016, building solutions for ETF primary market operations. Under his leadership, Ultumus has grown into a market leader serving major financial institutions globally, with its ETF Order Management System (OMS) supporting create and redeem workflows worldwide and its PCF platform calculating and distributing portfolio composition files for ETF issuers across every major market.

Bernie sold Ultumus to SIX Group in 2021, where it continues to expand across Europe, North America, and Asia-Pacific. Known for building lasting teams and leveraging cutting-edge technology, Bernie is focused on establishing Ultumus as the backbone of the global index and ETF industry through standardisation and automation.

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