BlackRock Inc., the world’s largest asset manager, is launching a technology-themed exchange-traded fund (ETF) in Hong Kong.
Its iShares Hang Seng TECH ETF, which will be listed on the Hong Kong stock exchange on September 17, will track the new Hang Seng TECH Index.
The fund is designed to mimic performance of the 30 largest technology companies listed on the bourse, BlackRock says in a statement on September 14. The companies include Chinese e-commerce operators JD.com and Alibaba Group, and internet firm NetEase.
The new ETF allows BlackRock to tap into investment opportunities from the secondary listings of Chinese technology firms that have their primary listing in the US.
The Hong Kong bourse in 2018 revised its listing rules to promote secondary listings, especially for China-based companies in innovative and new economy sectors.
“Relaxation of the Hong Kong Stock Exchange rules to facilitate secondary listings has led to an influx of Chinese new economy stocks listings,” partly driven by the “homecoming” of US-listed Chinese technology companies Susan Chan, BlackRock’s head of Asia, says in the statement.
BlackRock is the second asset manager to use the Hang Seng TECH Index as an ETF benchmark.
The index was introduced in July and Chinese manager CSOP Asset Management was the first to use it as the benchmark for its CSOP Hang Seng Tech Index ETF last month.
New York-based BlackRock had US$6.47 trillion of total assets under management as of March 2020.