Hong Kong-based Value Partners will be delisting its Value Korea, Japan and Taiwan ETFs from the local bourse, according to filings from Hong Kong Exchange.
The last trading day for the three products is on 16 December.
The firm decided to terminate the products because of their relatively small assets.
Products to be delisted
| Product |
AUM |
| Value Korea ETF |
HK$22m |
| Value Japan ETF |
HK$52.19m |
| Value Taiwan ETF |
HK$33.8m |
Source: Hong Kong Exchange. As of 25 November 2019.
A Hong Kong-based Value Partners spokeswoman said that it is “no longer economically efficient nor in the best interest of the unit-holders” to continue the operations of the three products.
However, she would not comment on the firm’s minimum AUM requirement for an ETF. (Hong Kong-based Enhanced Investment Partners estimated that $25m (HK$195m) in AUM and at least $500,000 in daily turnover is necessary for an ETF to cover product costs).
Each of Value Partners’ other ETFs that are still listed in Hong Kong have minimum assets of about HK$100m ($12.7m), according to data from HKEX.
Value Partners’ other ETFs
| Product |
AUM |
| Value Gold ETF |
HK$1bn |
| Value China ETF |
HK$154m |
| Value A Share ETF |
HK$99.39m |
Source: Hong Kong Exchange. As of 25 November 2019.
The spokeswoman added that while the firm decided to delist three of its products, it plans to continue to grow its ETF business, including the launch of new ETFs in Malaysia as well as in Hong Kong.
The firm set-up its office in Malaysia in October last year to serve as the firm’s hub in Southeast Asia for product development, investment and distribution. At the time, the firm said that it intends to build in-house capabilities for Southeast Asia-focused products, including ETFs and shariah-compliant funds.
Delistings in Hong Kong
ETF delistings are not uncommon in Hong Kong. In total, six managers have already announced that they were delisting 14 ETF products this year, the latest being three i-Shares products, according to data from the Hong Kong Exchange.
In 2018, 12 ETF products were delisted and 35 in 2017 – although 16 of that number came from Deutsche Asset Management’s X-Trackers product suite.
In total, there are 111 ETFs listed in Hong Kong, with around HK$306bn in assets as of the end of October, according to data from Hong Kong Exchange. However, the market is dominated by Hong Kong- and China-focused products, accounting for around 75% of the ETF market’s AUM.
Hong Kong’s ETF market (excluding leveraged and inverse products)
| Underlying market |
Number of products |
AUM (HK$bn) |
Market share (%) |
| Mainland China A-Shares |
24 |
59.55 |
19.4% |
| Hong Kong equity |
17 |
169.67 |
55.3% |
| Asia-Pacific equity |
28 |
12.77 |
4.2% |
| Overseas equity |
24 |
25.19 |
8.2% |
| Fixed income and currency |
13 |
38.26 |
12.5% |
| Commodity |
5 |
1.37 |
0.4% |
| ETF total |
111 |
306.81 |
100% |
Source: Hong Kong Exchange. As of the end of October.
