China Asset Management (Hong Kong) Limited – ChinaAMC (HK) – has announced the Hong Kong stock exchange listing of its ChinaAMC 20+ Year US Treasury Bond ETF on 17 June 2024.
The fund aims to track the performance of the ICE US Treasury 20+ Year Bond index (total return), before fees and expenses. It is ChinaAMC (HK)’s first US Treasury bond product.
Jane Cai, managing director and head of fixed income at ChinaAMC (HK), said: “We believe the cycle of interest rate hikes is likely to draw to a close, and we anticipate a shift to a rate-cutting cycle in the latter half of the year”.
“Reflecting on the three previous rate-cutting periods from 2000 to the present, long-term US Treasury bonds have consistently delivered superior returns compared to long-term credit bonds and short-term US Treasury bonds.”
The fund offers listed and unlisted units in both accumulating and (quarterly) distributing classes in US dollars, renminbi and Hong Kong dollars. The total expense ratio for the listed share classes is 0.20%.
Max Lan, head of ETF investments at ChinaAMC (HK), noted that the 20+ year US Treasury ETF has already garnered a net inflow of $39.85bn since 2023.
Established in 2008, ChinaAMC (HK) is a wholly owned subsidiary of mainland China-based China Asset Management Co. Limited, which has $300bn in assets under management as of 31 March 2023, according to the company.
