Haitong CSI300 Index ETF makes IPO debut

07 March 2014   Category: News, Asia, Global, Hong Kong   By Asia Asset Management

Haitong International Securities Group listed its first RQFII ETF, the Haitong CSI300 Index ETF, on the Hong Kong Stock Exchange on March 7. In doing so, the firm becomes the first Hong Kong-based financial entity with a Mainland securities background to issue an RQFII ETF.

Hai Tong Asset Management (HK), a wholly-owned subsidiary of Haitong International Securities Group, will oversee the Haitong CSI300 Index ETF. The product will invest directly in the securities comprising the CSI300 Index in much the same weighting in which they are included in the index through its RQFII quota.

Ben Zhang, managing director of Hai Tong Asset Management (HK), noted: “After experiencing the preliminary adjustments and volatility in the stock market brought by recent reforms, investors hold high expectations for the Chinese investment market in 2014. As the economy has further consolidated upon reaching a soft landing coupled with easing inflation, there will be subsequent potential growth in the A-share market. Furthermore, the CSI300 Index is notably undervalued when compared with global major indices. Also, with its broad coverage, we believe that the Haitong CSI300 Index ETF tracking the underlying index will attract investors’ attention. We are confident that the product will be well received by institutional and retail investors.”

Up to the end of February, Haitong International Securities Group had been awarded an aggregate RQFII quota of 6.7 billion RMB (US$1.06 billion) via its parent company, Haitong International Holdings.