Stoxx has announced plans to open in China as part of efforts to tap one of Asia's growing exchange traded fund markets.

Stoxx, the Zurich-based index provier, has announced plans to open in China as part of efforts to tap one of Asia's growing exchange traded fund markets. 

The chosen Chinese name, STOXX 势拓, is represented by two characters symbolising momentum and innovation, respectively. According to Hartmut Graf, chief executive, the symbols describe the company's commitment to explore new areas in the indexing space and to gain better access to local markets in Greater China. 

Stoxx has been operating in Hong Kong since 2011 with index families that track stock performances across Asia and Chinese markets. It has also launched several of its flagship funds to Asian asset managers seeking to provide their clients with exposure to European stocks through ETFs and the like. The company is primarily known for its European indices.

While avenues for Chinese investors to gain exposure to overseas markets are still limited, this move by Stoxx marks a milestone in the evolving region.The move is also a reflection of the rising profile of China in international financial markets.

According to the latest Exchange Traded Products Landscape Report by BlackRock, there are only 28 Asian-domiciled ETFs that offer access to developed markets, including the Eurozone account, with a total of $537.3 million in assets under management. This is only around 0.3 per cent of total Asian ETF assets. Stoxx noted it is not looking for a quick response.

"In Asia, we found, it takes some time until clients adapt to alternative ways and providers. The launch of our Chinese name reflects our commitment to the Chinese market and our growing presence in it," Graf said.