Deutsche Bank has launched 11 new exchange traded funds (ETFs) in Hong Kong tracking the performance of sub-sections of the China's CSI 300 Index as well as the Index -compiled by China Securities Index Company - itself.

The ETFs are compliant with European Union's (EU's) third undertakings for collective investment in transferable securities directive (Ucits-III). And the German bank claims these are the first ETFs tracking the performance of 10 CSI 300 sector indexes.

"The new ETFs provide Asian investors with a transparent and liquid investment option and allow them cost-effective ease of access to the performance of the mainland Chinese equity market," said Marco Montanari, Asia head of Deutsche Bank's ETF platform, db x-trackers.

Ucits III fund regulations allow the ETFs to be sold throughout the EU and limit net counterparty risk exposure to 10%t of the relevant ETF's net asset value.

The 11 new China A-share ETFs are listed on the Stock Exchange of Hong Kong and have an annual all-in fee of 0.50% each. Montanari said the Luxembourg-registered funds can be more tax efficient for investors compared with other offshore ETFs, especially those in the US, where dividends may be taxed up to 30%.

The new ETFs offered by db x-trackers are all swap-based, meaning they use derivatives to synthetically replicate the performance of the CSI 300 Index and the sub-sector indexes. Deutsche Bank also puts up collateral against the value of the swap exposure on a daily basis.