AlphaShares, LLC has launched a new index comprising equities from Chinese companies of all capitalization sizes: the China All Cap Index.

Later this month, Claymore Securities, which has already sponsored two funds based on AlphaShares indexes, will launch an ETF linked to the China All Cap Index: the Claymore/AlphaShares China All-Cap ETF (NYSEArca: YAO).

The index caps exposure of a single stock at 5 percent and single sectors at 35 percent to avoid overconcentration.

The index is the first to provide exposure to the broad market of Chinese stocks by measuring the performance of all small-, mid- and large-cap investable publicly traded Chinese companies currently trading in New York and Hong Kong.

It does not, however, include China A-Shares—companies that are traded in the Chinese mainland stock exchanges and quoted in the local currency—and China B-Shares—those traded in the mainland and quoted in foreign currencies.

The new offerings would face strong competition in that space. There are at least five other ETFs that offer direct exposure to China’s broad stock market.

Among them, PowerShares has the Golden Dragon Halter USX China (NYSEArca: PGJ), which has mid-cap and small-cap companies comprising a big part of its portfolio.

Another rival would be the SPDR S&P China ETF (NYSEArca: GXC), though it’s mainly skewed to large-cap names, as well as the giant iShares FTSE/Xinhua China (NYSEArca: FXI), which is even more tilted to mega-caps than GXC.

AlphaShares has two other ETF offerings with Claymore: the Claymore/AlphaShares China Real Estate ETF (NYSEArca: TAO), and the Claymore/AlphaShares China Small Cap Index ETF (NYSEArca: HAO).