UBS Asset Management has launched a fixed income ETF offering exposure to the Chinese government bonds with 1-10 year maturities.

The UBS JP Morgan CNY China Government 1-10 Year Bond UCITS ETF (JC11:GR) is listed on the Deutsche Boerse with a total expense ratio of 0.33%. It is expected to list on the Italian Boerse and Six Swiss Exchange on 30 April.

JC11 tracks the JP Morgan China Government + Policy Bank 20% Capped 1-10 Year index and is denominated in Chinese Renminbi.

It enables investors to participate in the performance of Chinese renminbi fixed income government and policy bank bonds.

Policy banks include the China Development Bank, Agricultural Development Bank of China and Export-Import Bank of China with a maximum share in the index of 20%.

UBS AM appoints ETF capital markets head

The underlying bonds must be tradable on the Chinese interbank market and have a remaining term of between one year and 10 years.

UBS AM also launched a Chinese equity ETF in February, offering exposure to the A-Shares market.

Sign up to ETF Stream’s weekly email here