U.S. Listed Chinese Companies (N Shares) Outperform Broad Chinese Market Indices, Highlighting Further Potential Growth in China's "New Economy"

HONG KONG, Jan. 28, 2016 /PRNewswire/ -- Although 2015 is widely referred to as a bad year generally for Chinese equities, Enhanced Investment Products Limited (EIP) thinks investors are overlooking the performance of the most critical part of the Chinese changing economy, the so called "New Economy" stocks. EIP listed XIE Shares FTSE Chimerica ETF (Ticker: 3161.HK) in 2015 to provide investors efficient access to some of the leading stocks of China's new economy. Since its inception in April 2015, the Chimerica ETF has demonstrated a strong track record and solid performance results in comparison to some of the most widely utilized broad Chinese stock indices. The Chimerica ETF is a passively managed ETF that tracks the FTSE China N Shares Index, a strong performing China market index in 2015, with a return of +22.9%. This is in contrast to an average return of -5.76% for other widely utilized broad Chinese indices, including the FTSE A50, CSI 300, MSCI China, Shanghai Composite, and the Hang Seng China Enterprises indices.*

The graph shows the performance comparison of different indices, and the corresponding full names for each of these indices. All returns are based on USD calculation.

The Chimerica ETF captures the performance of US-listed Chinese companies known as N shares listed in the United States, which are mostly comprised of Chinese internet and technology companies that have primary listings on US exchanges such as the New York Stock Exchange (NYSE) or NASDAQ Exchange (NASDAQ).

Tobias Bland, CEO at EIP, which manages the Chimerica ETF, says: "We are extremely pleased with the type of exposure this ETF provides in relation to existing broad Chinese indices in Hong Kong, which are primarily slanted towards China's 'Old Economy'. As the Chinese economy slows and rebalances away from a production-based economy and towards a consumption-based economy, investors need to reconsider their allocation to US-listed Chinese ADRs (consisting mostly of Chinese internet companies), which are continuing to deliver impressive quarterly results. The performance of the largest US-listed Chinese companies in 2015 shows there are significant bright spots in China's economy. This year could provide a similar disparity in performance in Chinese indices, as China continues to rebalance towards the 'New Economy'."

The strong performance of the Chimerica ETF in 2015 is on the back of the MSCI inclusion of 14 Chinese ADRs into the MSCI China Index and MSCI Emerging Markets Index on November 30, 2015; all included in the Chimerica ETF. The inclusion consists of two phases: the first phase in November 2015 and the second in May 2016. "The recognition of Chinese ADRs in MSCI global indices should lead to even more positive sentiment in these stocks in 2016," said Bland.

The Chimerica ETF tracks the FTSE China N Shares All Cap Capped Net Tax Index, which comprises the largest Chinese companies listed on the NYSE or NASDAQ. Chimerica was the first ETF in Asia to provide real-time access to Chinese companies listed in the US in one trade, enabling retail and institutional investors to trade during Asian hours in many of China's fastest growing companies including Alibaba, Baidu, JD.com, NetEase, Vipshop, and Ctrip.

For more information on the new ETF, Chimerica or XIE Shares please visit: www.xieshares.com.

NOTES TO EDITOR:

ABOUT EIP

EIP was established in 2002. It is a Hong Kong based investment management firm focused on the Asia Pacific region. EIP launched XIE Shares Trust I* (*This is a synthetic ETF) and XIE Shares Trust II (together, XIE Shares ETF) in 2012 and 2015 respectively. XIE Shares ETFs are an extension of their cost-effective index product offerings in the form of exchange traded funds. XIE Shares ETFs provide their clients with a suite of index products that are transparent, cost-effective and simple to use. XIE Shares offers eight exchange traded funds tracking the local indices of eight emerging Asia countries: China, India, Indonesia, Korea, Malaysia, the Philippines, Taiwan and Thailand.  Investment involves risks, including possible loss of principal. The products offered by EIP may not be suitable for every investor. Prior to making any investment decision, potential investors should review the relevant prospectus and seek independent professional advice.

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