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China Asset Management’s A-shares ETF debuts in Hong Kong

By Hui Ching-hoo   
December 13, 2021

China Asset Management Co’s international arm kicks off the week with the public debut in Hong Kong of its newest exchange-traded fund, which tracks 50 leading Chinese stocks that are eligible for trading through the Stock Connect scheme.

The ChinaAMC MSCI China A 50 Connect ETF raised around US$200 million in its initial public offering, China Asset Management (Hong Kong) says in a statement on December 9, ahead of the December 13 listing.

The ETF tracks stocks such as LONGi Green Energy Technology Co, China Merchants Bank and Wanhua Chemical Group that can be traded via Stock Connect, which allows investors in Hong Kong and China to trade shares in each other’s markets.

Including the new fund, China Asset Management (Hong Kong) has 21 ETFs listed in the city.

“The [new] ETF provides investors with a competitive product with a low-fee structure to help international investors seize the huge opportunities in China’s economy,” Chief Executive Officer Tian Gan says in the statement.

It’s benchmarked against the MSCI China A 50 Connect Index, which “follows an innovative sector-balance approach that aims to ensure diversified and balanced representation of the broader China A share”, according to Julia Wu, managing director and head of Greater China client coverage at MSCI.

China Asset Management (Hong Kong) had $8.5 billion of assets under management as of June 2021 and its Beijing-based parent had 1.6 trillion RMB ($240 billion) of assets as of September.