EIP receives authorisation to launch Hong Kong ETFs

Jan 17th, 2012 | By | Category: Equities

Hong Kong-based investment firm Enhanced Investment Products (EIP) has received authorisation from the city’s securities authority, the Securities and Futures Commission (SFC), to launch a new suite of ETF products.

Enhanced Investment Products receives authorisation to launch HK ETFs

Enhanced Investment Products (EIP) has received authorisation to launch a range of swap-based ETFs in Hong Kong.

Expected to be the first Hong Kong-domiciled swap-based, or “synthetic”, ETF platform managed by a local company, EIP will list its first funds on the Hong Kong Stock Exchange on Thursday, 16 February 2012.

The portfolio of ETFs EIP intends to launch has undergone a rigorous authorisation process, after the regulators recently tightened their requirements. The ETF range will be the first of its kind in Hong Kong to be managed by a local manager.

The launch will initiate with a range country-specific ETFs aimed at providing investors with easy access to individual countries in Emerging Asia. Investors will be able to go long or short these ETFs to express their positive or negative views on these markets.

With 10 years’ experience in the region, EIP’s new products should help to establish the company as an emerging market specialist.

The ETFs will be managed by Paul So, Head of Beta Products at EIP, who has recently been building the team in anticipation of the launch. “This is a monumental milestone for EIP. We are the first local asset management firm to have received SFC’s authorisation to launch a suite of swap-based synthetic ETF products in Hong Kong,” says So.

Tobias Bland, CEO of EIP, says: “The ETF market is very strong in the US and Europe, and is growing substantially in Asia, as investors become savvy to investment opportunities in Emerging Asia. We feel that it is the right time to take advantage of this interest and are pleased to be the first local firm to be launching and managing swap-based synthetic ETFs authorised by the SFC. We are looking forward to their formal launch in mid-February.”

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