iSHARES FTSE CHINA A50 ETF (2823)

A cost-effective and convenient way to access the 50 largest China A-Share companies

Oriental pearl tower with iShares FTSE China A50 ETF ticker, 2823, illustrated on it.
  • IMPORTANT: Investment involves risk, including the loss of principal. Investors should refer to the Prospectus and Key Facts Statement of the iShares FTSE China A50 ETF (the “ETF”) for details, including the risk factors. Investors should not base investment decisions on this marketing material alone. Investors should note:

    IMPORTANT: Investment involves risk, including the loss of principal. Investors should refer to the Prospectus and Key Facts Statement of the iShares FTSE China A50 ETF (the “ETF”) for details, including the risk factors. Investors should not base investment decisions on this marketing material alone. Investors should note:

    • The ETF aims to provide investment results that, before fees and expenses, closely correspond to the performance of the FTSE China A50 Index (“the Underlying Index”).
    • Generally, investments in emerging markets, such as the A Share market, may involve increased risks such as liquidity risks, currency risks/control, political and economic uncertainties, legal, regulatory and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility. The A Share market may be more volatile and unstable than those in the more developed markets. The ETF’s exposure is concentrated in the PRC and may be more volatile than funds adopting a more diversified strategy.
    • The ETF is subject to tracking error risk, which is the risk that its performance may not track that of the Underlying Index exactly.
    • The ETF is subject to restrictions and requirements applicable to QFII / RQFII investment, and the applicable laws, rules and regulations in the PRC, which are subject to change and such change may have potential retrospective effect. The ETF may be unable to invest via the QFII/RQFII status of each QFII/RQFII Licence Holder including if the approval of the relevant QFII/RQFII Licence Holder is revoked/terminated or otherwise invalidated as the ETF may be prohibited from trading of relevant securities and repatriation of the ETF’s monies, or if any of the key operators (including the QFII/RQFII Custodians and PRC broker) is bankrupt or in default and/or is disqualified from performing its obligations (including execution or settlement of any transaction or transfer of monies or securities).
    • The relevant rules and regulations on the Stock Connect are subject to change. The Stock Connect is subject to quota limitations. Where a suspension in the trading through the programme is effected, the ETF’s ability to invest in A shares through Stock Connect will be adversely affected.
    • The ETF currently does not provision for withholding tax on capital gains (“CGT”) arising from its investment via CAAPs, QFII or RQFII on or after 17 November 2014, or its investment via Stock Connect. There are risks and uncertainties associated with the current PRC tax laws, regulations and practice in respect of capital gains realized on the ETF’s PRC investments, which may have retrospective effect. Any increased tax liabilities on the ETF may adversely affect its value, and the resultant tax liability would be eventually borne by investors.
    • All units will receive distributions in the base currency (RMB) only. The Manager may at its discretion pay dividends out of capital or effectively out of capital which amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of dividends out of or effectively out of the ETF’s capital may result in an immediate reduction of the ETF’s NAV per unit.
    • In the event that a unitholder has no RMB account, the unitholder may have to bear (i) the fees and charges associated with the conversion of such dividend distributions from RMB to HKD or any other currency; and (ii) other bank or financial institutional fees and charges associated with the handling of the distribution payment in currencies other than RMB. Unitholders are advised to check with their brokers regarding arrangements for distribution.
    • The trading price of the units of the ETF on the SEHK is subject to market forces and may trade at a substantial premium/discount to the ETF’s NAV.

FUND HIGHLIGHTS

The iShares FTSE China A50 ETF seeks to track the investment results of an index composed of the 50 largest companies in mainland China, trading on the Shanghai and Shenzhen Stock Exchanges.

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Cost-effective access to the 50 largest China A-Shares companies

The iShares FTSE A50 China ETF is one of the most cost-effective physical China A50 ETFs, with an all-inclusive and transparent annual management fee of just 35 bps.1

Water drop symbolizing liquidity

Large AUM with high liquidity

The iShares FTSE A50 China ETF has US$1.97 billion assets under management (AUM) and an average daily volume (ADV) of US$7.25 million2. This makes it one of the largest China A-Share ETFs listed outside mainland China that offers high liquidity and a tight bid-offer spread.

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In time zone trading efficiency

The iShares FTSE A50 China ETF trades in the same market hours as its underlying securities, allowing the ETF to accurately reflect its underlying portfolio value.

KEY FUND FACTS

Caption:

Fund information

Fund nameiShares FTSE China A50 ETF
Ticker2823 HK (HKD), 82823 HK (RMB)
SEDOLB046M96 (HKD), BYSYN68 (RMB)
ISINHK2823028546 (HKD); HK0000343787 (RMB)
Benchmark IndexFTSE China A50 Index
Management fee (p.a.)0.35%
Inception date15 Nov 2004
Net assets (as of 30 Sep 2023)RMB 14,363,968,481
ExchangeHong Kong Stock Exchange
Asset classEquity
Trading board lot size100 (for each counter)
Trading currencyHKD, RMB
Distribution frequencyAnnually

Fund sector exposure

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Fund top 10 holdings

Name of holdingsWeight (%)Sector
KWEICHOW MOUTAI LTD A15.42Consumer Staples
CONTEMPORARY AMPEREX TECHNOLOGY LT6.10Industrials
CHINA MERCHANTS BANK LTD A4.64Financials
WULIANGYE YIBIN LTD A4.14Consumer Staples
CHINA YANGTZE POWER LTD A3.72Utilities
PING AN INSURANCE (GROUP) OF CHINA3.57Financials
BYD LTD A2.94Consumer Discretionary
INDUSTRIAL AND COMMERCIAL BANK OF CHINA LTD A2.46Financials
AGRICULTURAL BANK OF CHINA LTD A2.33Financials
INDUSTRIAL BANK LTD A2.31Financials

Source: BlackRock; as of 30 September 2023. Allocations are subject to change. Due to rounding, the total may not be equal to 100%. 

ABOUT THE INDEX

About the FTSE China A50 Index3:

  • Convenient access to China A-Share exposure: Used by multiple ETF issuers and backed by liquid derivatives, the FTSE China A50 Index not only provides investors access to the 50 largest Chinese securities in the A-Share market, but also acts as a tool for portfolio diversification.
  • Long standing benchmark: Launched in 2003, it is one of the first China A-Share indices offered by an international index provider. FTSE China A50 Index has 20 years of experience tracking the performance of the 50 largest Chinese securities listed on Shanghai Stock Exchange and Shenzhen Stock Exchange.
  • Continued evolution since index inception: The FTSE China A50 Index has evolved with China’s market development including the incorporation of Foreign Ownership Level (FOL) in March 2022. This inclusion resulted in reducing financial sector constituents from 37% to 28% of the total index, resulting in better industry diversification of the index.
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Index characteristics

IndexFTSE China A50 Index
No. of constituents50
CurrencyCNH
Market capitalization (CNH million)4,099,404
RebalancingQuarterly
Bloomberg TickerXINA50NC
Launch date13 December 2003

Source: FTSE Russell, as of 30 September 2023.

WHY iSHARES FOR CHINA INVESTING

  • iShares is a global leader in China A50 ETFs with long-term expertise in China investing. With around US$2 billion of assets under management, the iShares FTSE A50 China ETF is one of the largest China A-Share ETFs listed outside mainland China.4
  • iShares provides investors choice with a broad suite of China ETFs. We are committed to helping investors access China’s onshore markets to meet their investment objectives over the past two decades with our local and global ETF offerings across equities and fixed income asset classes.
  • iShares offers investors easy access to China exposure through index investing with ETFs. Through index investing, investors are able to access the 50 largest Chinese securities in the A-Share market, while seeking to minimize risk and capture opportunities by choosing an established benchmark from index providers.
 iShares and Indexed to FTSE Russell logos.