French exchange-traded fund provider Amundi has launched its first Hong Kong-domiciled ETF in Asia. The Amundi Hang Seng HK 35 Index ETF is also the first ETF to track the Hang Seng HK 35 Index.
The Amundi Hang Seng HK 35 Index ETF marks Amundi’s debut ETF launch to the Hong Kong market.
Compiled by Hang Seng Indices, the Hang Seng HK 35 Index tracks 35 large cap, liquid Hong Kong companies which derive the majority of their revenue outside of China’s mainland market. Individual companies in the index are capped at 10%. Through lower correlation to Mainland China, Amundi is seeking to help local investors diversify their portfolios away from their core China-focused exposures. Furthermore, the ETF may provide an attractive alternative to investors wishing to limit their investments to a slowing Chinese economy.
Matthieu Guignard, Global Head of Product Development and Capital Markets at Amundi ETF, Indexing & Smart Beta, said in a statement: “Amundi’s first listing on the Hong Kong market represents a new milestone in the group’s ETF development. Building on our strong experience as a leading ETF provider in Europe, we have the ambition to become a reference ETF provider for both institutional and retail investors in Asia, leveraging on the strong pillars of cost efficiency and innovation that have long been at the heart of our success.”
Xiaofeng Zhong, CEO Amundi North Asia, added: “Amundi is recognised as a leading asset manager globally and locally, with over 30 years of history in Hong Kong. We are now bringing to local investors passive strategies which offer more choice and are a complement to our current, active strategies. We look forward to keep on developing new investment solutions in Hong Kong in the future.”
Hang Seng Indices launched the index in January 2003, but provide historical data from January 2000.
As of the end of February, the index is primarily exposed to the financials sector (six firms – 34.6% weighting), property & construction sector (11 firms – 23.9% weighting), utilities sector (four firms – 15.2% weighting), conglomerates (two firms – 12.0%), and consumer services sector (seven firms – 9.2% weighting). The highest weighted constituents are CKH Holdings (10.2%), AIA (9.3%), HSBC (8.9%), HKEx (7.8%), and CLP Holdings (5.2%).
Roughly $24bn is invested in ETFs linked to Hang Seng Indices.