CSOP Asset Management has received approval from the Securities and Futures Commission (SFC) to launch the CSOP Yinhua CSI 5G Communications Theme ETF, according to the regulator’s records.
The fund will be launched under the new ETF cross-listing scheme between Hong Kong and the mainland, where players in Hong Kong are able to launch feeder ETFs that invest in China-listed ETFs, and vice-versa. It will be the second product to be rolled out in Hong Kong under the scheme, the first being the Hang Seng Harvest CSI 300 Index ETF, which invests in Harvest Fund Management’s Shenzhen-listed CSI 300 Index ETF.
CSOP’s product will invest its assets in the Shenzhen-listed Yinhua CSI 5G Communications ETF, which was launched in China in February. The ETF will provide investors in Hong Kong exposure to the fast-growing 5G sector in China.
While there are other ETFs listed in Hong Kong that invest in technology China A-shares stocks via the stock connect programmes or other inbound schemes (such as the RQFII), CSOP’s ETF will be the first 5G China ETF in the territory.
Other asset mangers are also positive on China’s 5G sector, including Neuberger Berman, GAM Investments, and Beijing-headquartered China Asset Management.
“Amid the disruption caused by Covid-19 and trade tensions, new government-backed technology infrastructure projects, including artificial intelligence, 5G, industrial internet of things and electric vehicle charging stations are set to be some of the key drivers for long-term economic growth in China,” Ning Meng, China equity strategy leader at Neuberger Berman said previously.
The CSI 5G Communication Index is composed of A-Share stocks which are related to 5G communication technology. The index’s highest sector allocation is industrials (74.89%), followed by telecommunication services (23.85%), according to the latest data from China Securities Index’s website.
The CSI 5G Communication Index
Meanwhile, in Shenzhen, two ETF feeders that invest in Hong Kong-listed products have already been approved by the China Securities Regulatory Commission, according to information from the Shenzhen Stock Exchange (SZSE). They are Harvest Fund Management’s Hang Seng China Enterprise Exchange Traded Index and Yinhua Fund Management’s ICBC CSOP S&P China New Economy Exchange Traded Index.
Both products have closed their initial offering period last month, according to SZSE.
Separately, Samsung Asset Management’s Samsung S&P High Dividend APAC ex NZ Reits ETF and the Haitong MSCI China A ESG ETF from Haitong International Asset Management in Hong Kong were listed on Hong Kong Stock Exchange (HKEX) today, according to HKEX filings.
