HKEx welcomes first RQFII ETF from an offshore fund manager

28 November 2013   Category: News, Asia, China, Global, Hong Kong   By Asia Asset Management

Hong Kong Exchanges and Clearing Limited (HKEx) welcomed on November 27 the listing of the Hang Seng China A Industry Top Index Exchange Traded Fund (ETF), the world’s first RMB Qualified Foreign Institutional Investor (RQFII) ETF from a fund manager based outside China.

The Hong Kong-based Hang Seng Investment Management Limited’s Hang Seng China A Industry Top Index ETF is Hong Kong’s tenth RQFII ETF and the newest of the 115 ETFs listed at HKEx.

The new ETF’s underlying index reflects the performance of A-shares of leading Mainland companies in each of the 11 industries under the Hang Seng Industry Classification System. The ETF has a Hong Kong dollar counter and a RMB counter so investors can buy units in either currency.

“Today’s listing is a positive development for Hong Kong’s ETF market as RQFII ETFs are now being issued by a wider range of fund managers,” said Romnesh Lamba, HKEx’s co-head of global markets. “HKEx is the first market with an RQFII ETF launched solely by an offshore fund manager and as a result we anticipate that other international fund managers will use our platform for their initial launch of RQFII ETFs.”

ETF trading at HKEx has been on the rise this year, with average daily turnover for January to October up 123% from the same period last year, led by Mainland A-share ETFs.

Top 10 ETFs at HKEx by HKD Turnover Value (Jan-Oct 2013)
 

Rank

Stock Code

Name

1

2823

iShares FTSE A50 China Index ETF

2

2822 & 82822

CSOP FTSE China A50 ETF

3

2800

Tracker Fund of Hong Kong

4

3188 & 83188

ChinaAMC CSI 300 Index ETF

5

2828

Hang Seng H-Share Index ETF

6

3100 & 83100

E Fund CSI 100 A-Share Index ETF

7

2827

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

8

3049

db x-trackers CSI300 UCITS ETF

9

2840

SPDR Gold Trust

10

3118 & 83118

Harvest MSCI China A Index ETF