Hong Kong-listed exchange-traded funds earned an estimated revenue of US$247 million from January through to November 26 on growing demand for Chinese technology stocks, according to a Bloomberg Intelligence report.
CSOP Asset Management accounted for $137 million or 56% of revenue as investors piled into its technology-focused products, far ahead of second placed Hang Seng Investment Management, which earned about $29 million.
CSOP benefitted from strong demand for exposure to the Hang Seng Tech Index as a sharp rally in the benchmark’s heavyweight constituents boosted the company’s assets and fee income.
Technology shares were among the strongest performers in the Hong Kong stock market this year, driven by improved earnings expectations, easing regulatory pressure on China’s internet sector, and renewed optimism around artificial intelligence and digital platforms.
Alibaba Group Holding, the largest stock in the Hang Seng Tech Index with a 9.3% weighting, was up a hefty 89%, lifting the benchmark around 25% in the 11 months up to November 26.
CSOP’s Hang Seng Tech ETF alone attracted more than $3.4 billion of inflows, generating roughly $54 million in revenue, according to the report.
Meanwhile, third placed iShares earned revenue of $28 million, followed by China Asset Management with $22 million, Global X, $11 million, and State Street, $6 million.
Overall, equity ETFs continued to dominate the market, accounting for 84% of fund flows and assets, while products linked to China contributed 45% of ETF revenue.
