First A-share industry sector ETFs to debut on HKEx

First A-share industry sector ETFs to debut on HKEx

17/11/09

 


First A-share Industry Sector ETFs to Debut on HKEx

Hong Kong's Exchange Traded Fund (ETF) market further expands with a series of five Mainland A-share industry sector ETFs setting to debut on Wednesday, 18 November on the Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx).

The new Mainland A-share index ETFs are:

Stock Code

Name of ETF

Benchmark index

2846

iShares CSI 300 A-Share Index ETF

CSI 300 Index

3050

iShares CSI A-Share Energy Index ETF

CSI 300 Energy Index

3039

iShares CSI A-Share Materials Index ETF

CSI 300 Materials Index

2829

iShares CSI A-Share Financials Index ETF

CSI 300 Financials Index

3006

iShares CSI A-Share Infrastructure Index ETF

CSI 300 Infrastructure Index

With the listing of these five new ETFs, there will be a total of eight ETFs on Mainland A-share indices listed on the Exchange, and HKEx will be the first exchange with Mainland A-share industry sector ETFs. 

All ETFs listed on the Exchange, including these five new iShares listings, are designated for market making and for short selling with tick rule exemption.  The market makers for these five ETFs are Citigroup Global Markets Asia Limited, Credit Suisse Securities (Hong Kong) Limited and UBS Securities Hong Kong Limited.

On 18 November, the Exchange will have listed 42 ETFs.  There are eight ETFs on Mainland A-share indices, seven on Hong Kong equity indices, 22 on other regional and international equity indices, two on commodities and three on bonds and money markets.

The three other Mainland A-share index ETFs are:

Stock Code

Name of ETF

Benchmark index

2823

iShares FTSE/Xinhua A50 China Index ETF

FTSE/Xinhua China A50 Index

2827

W.I.S.E. - CSI 300 China Tracker

CSI 300 Index

3024

W.I.S.E. - SSE50 China Tracker

SSE50 Index

Investors should note that all A-share ETFs use derivative instruments to synthetically replicate the performance of the underlying benchmarks.  These ETFs are subject to counterparty risk of the derivative instruments' issuers and may suffer losses if such issuers default or fail to honour their contractual commitments. For a better understanding of the risks involved, investors are advised to read the ETFs' prospectuses in full prior to making any investment decisions.  Information on the various risks of ETFs and their structures is available on the HKEx website.