State Street Global Advisors Launches SPDR MSCI China A Shares IMI ETF

BOSTON--(BUSINESS WIRE)--

State Street Global Advisors (SSGA), the asset management business of State Street Corporation STT, today announced that the SPDR MSCI China A Shares IMI ETF XINA began trading on the NYSE Arca. XINA offers investors access to A shares of companies incorporated in mainland China which represents approximately 51 percent of the Chinese equity market¹ and was available only to China-domiciled investors until recently. Unlike some China A shares ETF offerings that are managed through third-party sub-advisors, XINA will be managed directly by State Street Global Advisors Asia Limited, based in Hong Kong.

"Given that China is both the second largest economy and the second largest equity market in the world, we feel it's important to have exposure in your portfolio," said Michael Arone, chief investment strategist for State Street Global Advisors' US intermediary business. "Broader exposure, with the benefits of diversification² may be valuable in the long term as these market developments create potentially long-term investment opportunities for A shares even as short-term volatility may remain high."

"As the Chinese market becomes more accessible to investors outside of China, clients have asked for an A shares ETF designed to track a broad-based and well known index," said Nicholas Good, chief operating officer of the US intermediary business at SSGA. "While volatility in the A shares market has been elevated recently, the Chinese government has announced near-term policy actions to restore investor confidence and we believe that the domestic Chinese equity market will continue to emerge as a long term staple of investor portfolios."

The SPDR MSCI China A Shares IMI ETF seeks to track the performance of the MSCI China A International IMI Index. The index captures large, mid and small cap representation of Chinese companies with A share listings on the Shanghai or Shenzhen Stock Exchanges. As of September 30, 2015, the Index was comprised of 1795 constituents.³ Alternative exposures to the A share market, such as the CSI 300 index and the FTSE A 50 index, can potentially limit exposure to only large and midcap stocks⁴. XINA has a gross and net expense ratio of 0.65⁵ percent.

About SPDR Exchange Traded Funds
SPDR ETFs are a comprehensive family spanning an array of international and domestic asset classes. SPDR ETFs are managed by SSGA Funds Management, Inc., a registered investment adviser and wholly owned subsidiary of State Street Corporation. The funds provide investors with the flexibility to select investments that are precisely aligned to their investment strategy. Recognized as an industry pioneer, State Street created the first US listed ETF in 1993 (SPDR S&P 500® – Ticker SPY) and has remained on the forefront of responsible innovation, as evidenced by the introduction of many ground-breaking products, including first-to-market launches with gold, international real estate, international fixed income, and sector ETFs. For more information, visit www.spdrs.com.

About State Street Global Advisors
For nearly four decades, State Street Global Advisors has been committed to helping financial professionals and those who rely on them achieve their investment objectives. We partner with institutions and financial professionals to help them reach their goals through a rigorous, research-driven process spanning both active and index disciplines. We take pride in working closely with our clients to develop precise investment strategies, including our pioneering family of SPDR ETFs. With trillions* in assets under management, our scale and global footprint provide unrivaled access to markets and asset classes, and allow us to deliver expert insights and investment solutions.

State Street Global Advisors is the investment management arm of State Street Corporation.

*Assets under management were $2.2 trillion as of September 30, 2015. Assets under management include approximately $25 billion as of September 30, 2015, for which State Street Global Markets, LLC, an affiliate of SSGA, serves as the distribution agent.

ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns.

Chinese securities A shares involves certain investments risks and investment considerations including, (i) the small size of the market for Chinese securities relative to the US market, low volume of trading relative to U.S. securities, lack of liquidity and in price volatility, (ii) currency devaluations and other currency exchange rate fluctuations or blockage, (iii) the nature and extent of intervention by the Chinese government in the Chinese securities markets, whether such intervention will continue and the impact of such intervention or its discontinuation, (iv) the ability of Chinese issuers to unilaterally suspend trading of their securities, and (v) custody risks associated with investing through a RQFII.

Foreign (non-U.S.) Securities may be subject to greater political, economic, environmental, credit and information risks. Foreign securities may be subject to higher volatility than U.S. securities, due to varying degrees of regulation and limited liquidity. These risks are magnified in emerging markets.

Equity securities may fluctuate in value in response to the activities of individual companies and general market and economic conditions.

Passively managed funds hold a range of securities that, in the aggregate, approximates the full Index in terms of key risk factors and other characteristics. This may cause the fund to experience tracking errors relative to performance of the index.

Derivative investments may involve risks such as potential illiquidity of the markets and additional risk of loss of principal.

Concentrated investments in a particular industry or sector may be more vulnerable to adverse changes in that industry or sector.

Non-diversified funds that focus on a relatively small number of issuers tend to be more volatile than diversified funds and the market as a whole.

Standard & Poor's®, S&P® and SPDR® are registered trademarks of Standard & Poor's Financial Services LLC (S&P); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones); and these trademarks have been licensed for use by S&P Dow Jones Indices LLC (SPDJI) and sublicensed for certain purposes by State Street Corporation. State Street Corporation's financial products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and third party licensors and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability in relation thereto, including for any errors, omissions, or interruptions of any index.

The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. The Prospectus contains a more detailed description of the limited relationship MSCI has with SSGA Funds Management, Inc. and any related funds.

Distributor: State Street Global Markets, LLC, member FINRA, SIPC, a wholly owned subsidiary of State Street Corporation. References to State Street may include State Street Corporation and its affiliates. Certain State Street affiliates provide services and receive fees from the SPDR ETFs. State Street Global Markets, LLC is the distributor for all registered products on behalf of the advisor.

The CSI 300 Index is a free-float weighted index that consists of 300 A-share stocks listed on the Shanghai or Shenzhen Stock Exchanges.

The FTSE China A50 Index includes the largest 50 A Share Chinese companies by total market cap.

Before investing, consider the fund's investment objectives, risks, charges and expenses, which are described in the fund's prospectus. To obtain a prospectus or summary prospectus which contains information regarding these risks and other information, call 866.787.2257 or visit spdrs.com. Read it carefully.

Not FDIC Insured * No Bank Guarantee * May Lose Value

CORP-1646

¹ Source: Bloomberg, FactSet, State Street Global Advisors, as of September 30, 2015.
² The SPDR MSCI China A Shares ETF is a non-diversified fund. Please see fund's prospectus for more information.
³ MSCI as of September 30, 2015
⁴ The CSI 300 Index and the FTSE China A50 Index are the indices tracked by the three largest China A shares ETFs listed on US stock exchanges: db x-trackers Harvest CSI 300 China A-Shares ETF [ASHR]; Market Vectors ChinaAMC A-Share ETF [PEK]; and CSOP FTSE China A50 ETF [AFTY] (based on the net assets as of September 30, 2015)
⁵ The gross expense ratio is the fund's total annual operating expenses ratio. It is gross of any fee waivers or expense reimbursements. It can be found in the fund's most recent prospectus.

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