Posted inPerformance

Five funds outpacing the Hong Kong stock market rally

FSA looks at which funds have outpaced the Hong Kong stock market rally of the past two weeks.
Hong Kong and China Flag

Hong Kong stocks have rallied extensively in the past two weeks, bringing hopes that the battered stock market has finally bottomed.

In the past 10 days of trading sessions, the large cap technology and financial stocks have propelled the broader Hang Seng Index (HSI) up 14.1% since April 19.

The index heavy weights Tencent, AIA and Meituan have rallied 19.9%, 25% and 25.6%% respectively over the same period.

The gains appear to be broad based, as a number of financial stocks and property stocks have also rallied significantly over the period, with individual names like Ping An Insurance Group and China Resources Land up 27% and 28.5% respectively.

Below are five funds, which include some passive Exchange-Traded-Funds (ETFs) and active mutual funds, that have outpaced the gains of the Hang Seng Index over this two-week period according to data from FE fundinfo*.

Mirae Asset Hang Seng TECH ETF

Of the funds below, the Mirae Asset Hang Seng TECH ETF delivered the highest return of 18.1% over the period.

This product passively tracks the Hang Seng TECH index, comprised of the largest 30 tech-themed companies listed in the Hong Kong equity market.

Its largest constituents are in Alibaba, Tencent and at 10%, 9% and 8.5% respectively.

Strategy performance YTD

iShares MSCI Hong Kong ETF

The iShares MSCI Hong Kong ETF was another strong performer, with a 14.9% return over the period.

This ETF sold by BlackRock benefitted from its concentration (its top 10 account for roughly two thirds of its assets) and large allocation to AIA Group (20%), which has rallied 30% following strong quarterly earnings.

Its large weighting to Hong Kong Exchanges and Clearing Limited (12%) also boosted its performance given the stock’s 25% rally over the same period.

Strategy performance YTD

Matthews China

The Matthews China fund was one of three actively managed funds that outpaced the Hang Seng Index returns over the period, with a return of 14.5%.

The high conviction, growth at a reasonable price (GARP) strategy is run by Andrew Mattock, alongside Winnie Chwang, Sherwood Zhang and Hardy Zhu.

Benchmarked against the MSCI China index, this fund benefitted from its concentrated top positions in Chinese tech giants Tencent, Alibaba and Meituan.

Strategy performance YTD

Eastspring Investments China Equity

The Eastspring Investments China Equity was another mutual fund strategy that outpaced the HIS returns over the period, up 14.3%.

This strategy also benefitted being benchmarked against the MSCI China 10/40 Index, which has more technology names in its top-10 than the Hang Seng Index.

Strategy performance YTD

JPM China

Similarly, the JPM China fund also beat the Hang Seng Index over the period with a return of 14.2%.

Benchmarked against the MSCI China 10/40 Index, fund managers Rebecca Jiang and Li Tan also benefitted from a large exposure to the Chinese tech giants.

Strategy performance YTD

*The top-performing funds were measured in US dollar terms according to data from FE analytics. The performance period was between 19/4/2024 and 3/5/2024. The data only considered funds over USD10m in size that fall under the China, Greater China and Hong Kong equity sectors within the Hong Kong SFC Authorised Mutual or Singapore Mutual fund markets based on data from FE fundinfo. Leveraged ETFs were not included.

Part of the Mark Allen Group.