China Asset Management (Hong Kong) (ChinaAMC (HK)) has announced that the ChinaAMC Franklin HK-US Equity Cash Flow Focus ETF and the ChinaAMC Franklin FTSE Innovative Drugs ETF were successfully listed today on the Hong Kong Stock Exchange.

Developed in collaboration with Franklin Templeton and issued and managed by ChinaAMC (HK), the funds intend to broaden the range of cross-market exposures available to investors while reinforcing Hong Kong’s role as a bridge between Chinese and global capital markets.

The listings mark the first product milestone between China Asset Management, the parent company of ChinaAMC (HK), and Franklin Templeton, centred on China-US and China-global investment themes, including innovative pharmaceutical firms at the forefront of R&D-led healthcare advancements.

ChinaAMC Franklin HK-US Equity Cash Flow Focus ETF  seeks to track the Solactive G2 Cash Flow Index NTR, comprising 20 Hong Kong-listed, Stock Connect-eligible securities and 80 US-listed securities. The index targets a market allocation of 60% to Hong Kong and 40% to the US.

Eligible companies must have recorded positive operating cash flow in each of the past three financial years and are screened for positive forecast free cash flow, while financial companies are excluded. By applying a consistent cash-flow framework across both markets, the fund takes a disciplined approach to identifying companies with the capacity to shareholder returns through their core operations, said ChinaAMC (HK).

The ChinaAMC Franklin FTSE Innovative Drugs ETF adopts a more growth-oriented approach. The fund seeks to track the FTSE ETF Connect Innovative Drugs Index (net total return version), covering 30 Hong Kong-listed, Stock Connect-eligible securities and 70 developed-market securities, with target market allocations of 65% and 35%, respectively.

The index focuses on R&D-led pharmaceutical and biotechnology companies, excludes traditional Chinese medicine businesses and outsourced drug-service providers, and adjusts constituent weights based on R&D intensity.

By connecting Chinese innovators with global drugmakers, the fund reflects the cross-border nature of drug development while offering investors targeted exposure to companies at the forefront of global healthcare innovation and long-term capital appreciation, according to ChinaAMC (HK).

Tian Gan, CEO of ChinaAMC (HK), said: “Together, the two products balance cash-flow strength with innovation-driven growth potential and provide access to two enduring investment themes: companies with strong and consistent cash generation, and R&D-led innovative drug companies. By connecting Hong Kong with the US and other developed markets through these two new investment tools, we aim to offer investors greater scope for cross-market diversification and access to long-term structural opportunities.”

Rene Buehlmann, head of Asia Pacific at Franklin Templeton, said: “By combining ChinaAMC’s ETF capabilities with Franklin Templeton’s global investment expertise, these funds will provide investors access to compelling long-term investment themes.”