The First MSCI China A 50 Connect Index ETFs Listed on Hong Kong Exchange
16th December 2021 | Hong Kong
Hong Kong Exchange (HKEX) has listed the first Exchange Traded Funds (ETFs) to track the MSCI China A 50 Connect Index. There are 3 new ETFs that track the MSCI China A 50 Connect Index on Hong Kong Exchange, and are available in HKD, USD and RMB. The ETFs are: ChinaAMC MSCI China A 50 Connect ETF, CSOP MSCI China A 50 Connect ETF and E Fund (HK) MSCI China A50 Connect ETF.
“ The First MSCI China A 50 Connect Index ETFs Listed on Hong Kong Exchange “
3 New MSCI China A 50 Connect Index ETFs
- ChinaAMC MSCI China A 50 Connect ETF – 2839 (HKD) / 82839 (RMB) / 9839 (USD)
- CSOP MSCI China A 50 Connect ETF – 3003 (HKD)
- E Fund (HK) MSCI China A50 Connect ETF – 3003 (HKD)
HKEX Co-Head of Markets Wilfred Yiu:
“We warmly welcome the listing of these new ETFs tracking the MSCI China A 50 Connect Index. They will join the increasingly diversified Connect product ecosystem in Hong Kong, enriching the choice for investors around the world, and providing another investment option for those seeking exposure to China assets. HKEX looks forward to working with its clients and the market on continuing to build Hong Kong’s attractiveness as an offshore RMB hub and international trading, risk management and capital raising centre.”
Hong Kong Exchange, Stock Connect
Since its launch in 2014, Stock Connect, the landmark mutual market access programme linking the Hong Kong and Mainland China equity markets, has become the key channel for international investors to access the A-shares market and has helped facilitate the inclusion of Chinese A-shares into key global indices. Nowadays, over 70 per cent of international holding of A-shares are through the Stock Connect.
In October, HKEX successfully launched its first A-shares index futures – MSCI China A 50 Connect Index Futures, providing an efficient risk management tool for investors to manage their Stock Connect A-shares equity exposure in Hong Kong. The notional open interest of MSCI China A 50 Connect Index Futures exceeded US$2 billion in the first month of launch, with daily average trading volume of 11,927 contract in November.
The MSCI China A 50 Connect Index is designed to have a comprehensive representation of the Chinese economy by including 50 of the largest stocks in the China A-share large-cap universe, and targeting at least two stocks from each sector. The index comprises 50 Stock Connect eligible underlying stocks and historically has a high correlation to the performance of main MSCI A-share indices.
Hong Kong’s ETF market continues to go from strength to strength. The average daily turnover of ETFs for the first 11 months of 2021 was $7.8 billion, an increase of 20 per cent when compared with $6.5 billion for the same period last year. The ETF market is also seeing growing and broader exposure to China’s economy, with assets under management of China-focused ETFs accounting for 25 per cent of the Hong Kong ETF market as of end-November.
Further information about Hong Kong-listed Exchange Traded Products is available on the HKEX website.
- The First MSCI China A 50 Connect Index ETFs Listed on Hong Kong Exchange
- Hong Kong Exchange Launches MSCI China A 50 Connect Index, Gives Investors Additional Tool to Manage Portfolio Risks
Hong Kong Exchanges and Clearing Limited (HKEX) is one of the world’s major exchange groups, and operates a range of equity, commodity, fixed income and currency markets. HKEX is the world’s leading IPO market and as Hong Kong’s only securities and derivatives exchange and sole operator of its clearing houses, it is uniquely placed to offer regional and international investors access to Asia’s most vibrant markets.
HKEX is also the global leader in metals trading, through its wholly owned subsidiaries, The London Metal Exchange (LME) and LME Clear Limited. This commodity franchise was further enhanced with the launch of Qianhai Mercantile Exchange (QME), in China, in 2018. HKEX launched the pioneering Shanghai-Hong Kong Stock Connect programme in 2014, further expanded with the launch of Shenzhen Connect in 2016, and the launch of Bond Connect in 2017. www.hkexgroup.com
Caproasia.com | The leading financial website for financial professionals, professional investors and HNW investors. Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets? Quicklinks: Caproasia Access | TFC | Caproasia | Jobs