RQFII A-share ETFs are RMB-denominated physical A-share ETFs.
In April 2012, Mainland authorities approved the use of the RMB Qualified Foreign Institutional Investors (RQFII) quota by qualified Mainland fund management companies and securities companies to issue RMB-denominated ETFs tracking A-share indices (RQFII ETFs) for listing on the Exchange.
Through the RQFII investment quota granted by Mainland authorities, an RQFII A-share ETF seeks to track the performance of an A-share index by channelling the RMB raised outside Mainland China to invest directly in a portfolio of A-shares.
Like other listed ETFs, all RQFII A-share ETFs must be authorized by the SFC and are traded on the Stock Exchange of Hong Kong (SEHK) like stocks.
Investors are advised to read ETF prospectuses including the product key facts statement (Product KFS) in full to fully understand the nature, investment objective and strategy, key features, major risks and dividend policy of an RQFII A-share ETF.