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Blackrock joins Hang Seng Tech bandwagon

The firm becomes the fourth manager in Hong Kong that will be offering an ETF investing in technology stocks listed in the SAR.

Blackrock received approval from the Securities and Futures Commission (SFC) to launch the iShares Hang Seng Tech ETF on Tuesday, according to the regulator’s website.

FSA sought more information from Blackrock, but it was not able to provide more details about the product in time for publication.

The product will be the fourth ETF that will track the new index, which was launched in late-July. The other firms that have launched the same product are CSOP Asset Management, China Asset Management, and Hang Seng Investment Management.

The Hang Seng Tech Index includes 30 of the largest technology companies listed in Hong Kong. The index universe covers companies that have high business exposure to selected technology themes, including internet, fintech, cloud and e-commerce, according to a statement from the index provider.

Other firms have also recently launched technology-themed products in Hong Kong, including Mirae Asset Global Investments and Nikko Asset Management.

There are around 20 technology-related ETFs which have been launched in Hong Kong, compared to overall 109 ETFs in the SAR, according to the latest data from HKEX.

Blackrock’s move just follows after it launched in July the iShares MSCI Emerging Markets ETF (HK), which is the first Hong Kong-listed feeder ETF.

In Hong Kong, Blackrock has 12 SFC-authorised ETFs. The firm manages HK$34.98bn ($4.5bn) in ETF assets in Hong Kong, accounting for 11% of the SAR’s overall HK$315.4bn ETF market (excluding L&I products), according to data from Hong Kong Exchange.


Blackrock’s ETFs in Hong Kong

Name of the product Year of authorisation AUM (in HK$)
iShares Core CSI 300 ETF 2009 305.36m
iShares Core Hang Seng Index ETF 2016 234.58m
iShares Core KOSPI 200 ETF 2016 37.36m
iShares Core MSCI Asia ex Japan ETF 2009 7.04bn
iShares Core MSCI China ETF 2001 4.84bn
iShares Core MSCI Taiwan ETF 2016 521.92m
iShares Core S&P BSE SENSEX India ETF 2006 604.45m
iShares FTSE A50 China ETF 2004 20.81bn
iShares MSCI Emerging Asia ETF 2009 233.69m
iShares MSCI Emerging Markets ETF 2020 110.44m
iShares NASDAQ 100 ETF 2016 239.65m
iShares Hang Seng Tech ETF 2020
In total 34.98bn
Source: Hong Kong Stock Exchange

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