China Universal Asset Management listed an exchange-traded fund (ETF) at the Shanghai bourse on Friday to facilitate the development of the Yangtze River Delta region, according to a statement from the company.
The fund, with a net value reaching 6.2 billion yuan ($887.1 million) by Oct 18, will track the performance of the Yangtze River Delta Integrated Development Index designed by China Securities Index Co Ltd.
The index monitors the performance of the 180 public companies based in the Yangtze River Delta region. The total market cap of these companies amounts to 9.3 trillion yuan.
According to the Shanghai-based market information provider Wind Info, the aggregate return on equity (ROE) of this index from the beginning of 2013 to September 30, 2019 came to 90.44 percent, while the ROE of the benchmark CSI 300 index came to around 51.19 percent during the same period.
The integrated development of the Yangtze River Delta region was elevated to a national strategy in November last year. The purpose of launching the ETF is to better serve the real economy, the capital market and the national strategy, according to China Universal Management.