The ETF, the E Fund Yuanta Hang Seng Index Daily (2x) Leveraged ETF, was listed on the exchange on 25 August. The new ETF follows the firms’ launch in March of an inverse ETF tracking the same index.
The leveraged ETF’s objective is to closely correspond to twice the daily performance of the Hang Seng Index, according to information on E Fund Management (Hong Kong)’s website. E Fund is the fund manager of the ETF, while Yuanta Securities Investment Trust is the investment adviser of the product.
Taipei-based Yuanta has experience with L&I products in Taiwan. The firm is a major player in Taiwan’s ETF and L&I market, managing the most number of L&I products in the country (13 out of the total 39), according to data from the Tawain Stock Exchange. It also manages the most number of ETFs (29 out of 78) in Taiwan.
L&I ETFs have become very popular in Taiwan, with their assets accounting for 52% of Taiwan’s $9.39bn ETF market as of the end of March.
L&I products grow
The number of L&I products in Hong Kong more than doubled this year, increasing to 31 from just 12 products in 2016, according to data from the Hong Kong Exchange and Clearing (HKEX). The majority of the new L&I ETFs launched this year are those that invest in Hong Kong equities.
In March alone, four firms launched on the same day 16 L&I products that track the HSI and the Hang Seng China Enterprise Index.
L&I products in Hong Kong
|
|
December 2016 |
June 2017 |
||||
|
|
Number of products |
AUM ($m) |
Market share (%) |
Number of products |
AUM ($m) |
Market share (%) |
|
Hong Kong equity |
0 |
0 |
0 |
17 |
4,211 |
1.2 |
|
Asia-Pacific equity |
8 |
233 |
0.1 |
8 |
154 |
0 |
|
Overseas equity |
4 |
284 |
0.1 |
5 |
285 |
0.1 |
|
Total |
12 |
517 |
0.2 |
30 |
4,650 |
1.3 |
Source: Hong Kong Exchange and Clearing
Although L&I products only account for 1.3% of Hong Kong’s ETF market, five of the top 10 most actively traded ETF products in June were L&I products, according to a report from the Hong Kong Stock Exchange.
Souce: Hong Kong Exchange and Clearing
There are only six fund management firms that manage Hong Kong-listed L&I products: China Asset Management, CSOP Asset Management, E Fund Management, Enhanced Investment Products, Mirae Asset Global Investments and Samsung Asset Management.
