China is on track to surpass the US as the world’s largest economy in 2028. It already boasts the second-largest equity and bond markets globally, with an array of both well-established industry leaders and up-and-coming innovators.
An investment in this fund is an acquisition of units in a passively managed, index tracking fund rather than in the underlying assets owned by the fund. Costs may increase or decrease as result of currency and exchange rate fluctuations. Consult the legal documents for further information on costs.
Please read the risks of investing in the ETFs/products mentioned on this webpage at the end in the section Investment risks.
With the opportunity set as expansive as the country itself, it’s crucial for international investors to gain the most effective exposure. Discover how our ETFs can open the door to China, helping you gain access to the country’s wide range of growth stories.
Our new synthetic China ETFs
Access China’s growing domestic opportunities in the large and mid-cap space, with our new synthetic Invesco S&P China A 300 Swap UCITS ETF and the Invesco S&P China Mid-Cap 500 Swap UCITS ETFs. Our synthetic structure has the potential to deliver accurate performance and enhanced returns relative to the index.
Europe’s first China All Shares ETF
Offers the broadest and truest representation of the world’s second largest economy, with an ‘All Shares’ approach.
Invest in China’s rising new economy
Focuses on 100 of the most digitally and technologically innovative Chinese companies from a broad spectrum of business.
It is split into many different share types, which can be grouped into onshore-listed (mainland China) and offshore listed (Hong Kong and US) shares.
The domestic onshore market is largely dominated by A-shares and more aligned with China’s domestic growth. With a broad range of sectors that include both old economy (e.g. chemicals, industrials) and new economy (e.g. technology, consumers) companies, the A-share market represents China's rapidly changing domestic market.
Interest and flows into the A-share market has increased in recent years, thanks to the “Stock Connect” programme that allows global investors to trade A-shares through the Hong Kong Stock Exchange. Foreign ownership and research coverage in A-shares remain low, which could present alpha opportunities for investors.
The other part of the China market is offshore equities, which are listed on Hong Kong and US stock exchanges. Since access to A-shares were historically limited until recent years, foreign investors could only access Chinese companies through offshore equities. Offshore shares are mostly comprised of well-known global tech leaders with greater international presence, such as Alibaba and Tencent.
Stock Connect is the trading link between the onshore markets (Shanghai and Shenzhen Stock Exchanges) and the Hong Kong Stock Exchange. It allows international investors to trade mainland-listed shares (A-shares) via the Hong Kong Stock Exchange, which makes it the more accessible channel for A-shares. Introduced in 2014, the Stock Connect program has increased investment flows and improved accessibility to China’s onshore market for international investors.
Our index excludes A-shares that cannot be traded via Stock Connect, which significantly improves the tradability of the index.
China A-shares are shares of companies incorporated in mainland China and traded on the Shanghai and Shenzhen stock exchanges (onshore) in Renminbi.
A-shares are more aligned with China’s domestic growth, with a greater focus on technology and consumer-oriented companies that are generally not available in offshore markets. A-shares also exhibit low correlation to other equity markets, which could offer diversification benefits.
An "all shares" approach combines both onshore and offshore equities, and offers the broadest opportunity set and diversification for investing in China.
Download our guide to discover more about China’s different share types.
For complete information on risks, refer to the legal documents.
The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.
As a large portion of this fund is invested in less developed countries, investors should be prepared to accept a higher degree of risk than for an ETF that invests only in developed markets.
The Fund might be concentrated in a specific region or sector or be exposed to a limited number of positions, which might result in greater fluctuations in the value of the Fund than for a fund that is more diversified.
The value of equities and equity-related securities can be affected by a number of factors including the activities and results of the issuer and general and regional economic and market conditions. This may result in fluctuations in the value of the Fund.
The Fund’s performance may be adversely affected by variations in the exchange rates between the base currency of the Fund and the currencies to which the Fund is exposed.
Invesco S&P China A 300 Swap UCITS ETF, Invesco S&P China A 500 Swap UCITS ETF: The Fund’s ability to track the benchmark’s performance is reliant on the counterparties to continuously deliver the performance of the benchmark in line with the swap agreements and would also be affected by any spread between the pricing of the swaps and the pricing of the benchmark. The insolvency of any institutions providing services such as safekeeping of assets or acting as counterparty to derivatives or other instruments, may expose the Fund to financial loss. The fund might purchase securities that are not contained in the reference index and will enter into swap agreements to exchange the performance of those securities for the performance of the reference index.
Invesco MSCI China All Shares Stock Connect UCITS ETF: The Fund may be exposed to the risk of the borrower defaulting on its obligation to return the securities at the end of the loan period and of being unable to sell the collateral provided to it if the borrower defaults. The Fund may use Stock Connect to access China A Shares traded in Mainland China. This may result in additional liquidity risk and operational risks including settlement and default risks, regulatory risk and system failure risk.
Invesco MSCI China Technology All Shares Stock Connect UCITS ETF: The Fund may be exposed to the risk of the borrower defaulting on its obligation to return the securities at the end of the loan period and of being unable to sell the collateral provided to it if the borrower defaults. The Fund may use Stock Connect to access China A Shares traded in Mainland China. This may result in additional liquidity risk and operational risks including settlement and default risks, regulatory risk and system failure risk.
This marketing communication is exclusively for use by professional investors in Portugal. It is not intended for and should not be distributed to the public. Investors should read the legal documents prior to investing.
Data as at 27 September 2023, unless otherwise stated.
By accepting this material, you consent to communicate with us in English, unless you inform us otherwise.
This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.
Views and opinions are based on current market conditions and are subject to change.
For information on our funds and the relevant risks, refer to the Key Information Documents/Key Investor Information Documents (local languages) and Prospectus (English, French, German), and the financial reports, available from invesco.eu. A summary of investor rights is available in English from invescomanagementcompany.ie. The management company may terminate marketing arrangements.
UCITS ETF’s units / shares purchased on the secondary market cannot usually be sold directly back to UCITS ETF. Investors must buy and sell units / shares on a secondary market with the assistance of an intermediary (e.g. a stockbroker) and may incur fees for doing so. In addition, investors may pay more than the current net asset value when buying units / shares and may receive less than the current net asset value when selling them.
Invesco S&P China A 300 Swap UCITS ETF: The S&P China A 300 Index is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by Invesco. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Invesco. The Invesco S&P China A 300 Swap UCITS ETF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P China A 300 Index.
Invesco S&P China A 500 Swap UCITS ETF: The S&P China A MidCap 500 Index is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by Invesco. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Invesco. The Invesco S&P China A MidCap 500 Swap UCITS ETF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P China A MidCap 500 Index.
Invesco MSCI China All Shares Stock Connect UCITS ETF, Invesco MSCI China Technology All Shares Stock Connect UCITS ETF: The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. The prospectus contains a more detailed description of the limited relationship MSCI has with Invesco and any related funds.
For the full objectives and investment policy please consult the current prospectus.
Invesco Investment Management Limited, Ground Floor, 2 Cumberland Place, Fenian Street, Dublin 2, Ireland. Regulated by the Central Bank in Ireland.
EMEA3138257/2023
