HONG KONG–(BUSINESS WIRE)–CSOP Asset Management Limited (“CSOP”) is honoured to announce the listing of CSOP Global Smart Driving Index ETF (stock ticker: 3162.HK) on the Hong Kong Stock Exchange (the “HKEX”). CSOP Global Smart Driving Index ETF (3162.HK) will track the performance of the Solactive Global Smart Driving Index (the “Index”). With listing price at around HKD 7.8 per unit, trading lot of 100 shares and annual management fee of 0.99%, CSOP Global Smart Driving Index ETF will start to trade on 12 August, 2021. Upon inception, CSOP Global Smart Driving Index ETF (3162.HK) has received around USD 5.3 million initial investment.
Smart driving refers to a whole advanced and integrated industry chain of automobiles, which includes electric vehicles (“EV”), biodiesel fuel and battery system, autonomous control electronics, semiconductors manufacturing and other related industries. Smart driving maximizes motor vehicle fuel efficiency, improves driving safety and vehicle maintenance, and further adds convenience to drivers. As sustainable solutions become a key trend worldwide in recent years, smart driving industry has begun to flourish. Global EV penetration is estimated to reach 92.3% in 2050, compared to 2.9% in 2020.1 With the government’s support for the creation of an intelligent vehicle ecosystem, the scale of global EV is expected to approach USD 600 billion by 2025, about six times the scale of 2020.2 Smart driving has also become a critical battlefield among the world’s auto makers, tech giants and even major economies. Companies have filed over 60,000 patents worldwide as of November 2020, with more than 80% targeting at autonomous vehicles (“AV”) and EV.3 Boosted by the concept of green investing, a flood of money has been rushing into a variety of smart driving related companies that produce electric cars, renewable energy and the like. As of October 2020, investors have poured nearly USD 330 billion into mobility technologies, with two-thirds going to autonomous technology and smart mobility and the rest going to connectivity and electric vehicles.4
The Solactive Global Smart Driving Index comprehensively invests in up to 50 most representative global leaders listed on U.S., mainland China and Hong Kong. These companies represent advanced technological progress in the smart driving industry, focusing on electric vehicles, semiconductor manufacturing and related innovative sectors. Based on historical back-testing data, the index returns 82.88% over the prior 12 months.5 Weighted by free-float market capitalization of constituents and rebalanced quarterly, the index intends to capture the fast-growing potential of global smart driving industry in a scientific and timely manner. As the end of July 2021, the total market cap of the index is USD 2.6 trillion.6 Innovatively adopting a physical representative sampling strategy to replicate the index, CSOP Global Smart Driving Index ETF (3162.HK) presents investors with global investment opportunities of smart driving industry in an easy and transparent way.
As an established ETF manager in Hong Kong, CSOP has always been dedicated to providing ETFs/ETPs to global investors for 9 years. The future-themed ETFs that CSOP has already launched satisfy investors’ increasing needs for investing in the future, giving them a full exposure to the emerging thematic market. The launch of CSOP Global Smart Driving Index ETF (3162.HK) further completes CSOP’s thematic ETF spectrum.
“CSOP’s future thematic ETFs have ran hot on a boom in investors’ demand. CSOP Hang Seng TECH Index ETF(3033.HK), CSOP Yinhua CSI 5G Communications Theme ETF(3193.HK)7and CSOP Global Cloud Computing Technology Index ETF(3194.HK) present the opportunities of technology development. CSOP China Healthcare Disruption Index ETF(stock ticker: 3174.HK) discovers the value of the healthcare sector; CSOP Huatai-PineBridge CSI Photovoltaic Industry ETF(3134.HK)8 and the newly-launched CSOP Global Smart Driving Index ETF (3162.HK) ride on the trend of green life. Through these future-themed ETFs, investors can easily capture the investment opportunities of a smarter, greener and healthier future.” Comments Melody He, Managing Director, Head of Business Development.
About CSOP Asset Management Limited
CSOP Asset Management Limited (“CSOP”) was founded in 2008 as the first offshore asset manager set up by a regulated asset management company in China. With a dedicated focus on China investing, CSOP manages public and private funds, as well as providing investment advisory services to Asian and global investors. In addition, CSOP is best known as an ETF leader in Asia. As of 31 March 2021, CSOP has more than USD 10 billion in assets under management.
This material has not been reviewed by the Securities and Futures Commission.
Issuer: CSOP Asset Management Limited
Please refer to the offering documents for the index provider disclaimer.
IMPORTANT: Investment involves risks. Investment value may rise or fall. Past performance information presented is not indicative of future performance. Investors should refer to the Prospectus and the Product Key Facts Statement for further details, including product features and risk factors. Investors should not base on this material alone to make investment decisions.
Product Risk Disclosure
CSOP Global Smart Driving Index ETF
- CSOP Global Smart Driving Index ETF (the “Sub-Fund”) is not principal guaranteed and your investments may suffer losses. There is no assurance that the Sub-Fund will achieve its investment objective.
- Solactive Global Smart Driving Index (the “Index”) is a new index. The Sub-Fund may be riskier than other exchange traded funds tracking more established indices with longer operating history.
- The Index is subject to concentration risk as a result of tracking the performance of companies active in the smart driving sector. This may result in greater volatility in the value of the Sub-Fund than more diverse portfolios which comprise broad-based investments. Although the companies are based worldwide, the Index is subject to geographical concentration risks as a result of tracking the performance of primarily the US, PRC mainland and Hong Kong listed companies that have business operations in the field of smart driving. The value of the Sub-Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the US, PRC mainland and Hong Kong markets.
- The trading price of the Shares on the SEHK is driven by market factors such as the demand and supply of the Shares. Therefore, the Shares may trade at a substantial premium or discount to the Sub-Fund’s NAV
Please note that the above listed investment risks are not exhaustive and investors should read the Prospectus and the Product Key Facts Statement in detail before making any investment decision.
1 Source: Morgan Stanley Research, February 2021
2 Source: SPDB International, Passenger Federation, InsideEVs, IDC, IBISWorld
3 Source: McKinsey & Company, Mobility’s future: An investment reality check, 14 April 2021
4 Source: McKinsey & Company, Mobility’s future: An investment reality check, 14 April 2021
5 Source: Solactive AG, 2 August 2021
6 Source: Bloomberg
7 CSOP Yinhua CSI 5G Communications Theme ETF is a feeder fund. Its master fund, Yinhua CSI 5G Communication ETF, is not authorized by the Securities and Futures Commission for direct offering to the public in Hong Kong.
8 CSOP Huatai-PineBridge CSI Photovoltaic Industry ETF is a feeder fund. Its master fund, Huatai-PineBridge CSI Photovoltaic Industry ETF, is not authorized by the Securities and Futures Commission for direct offering to the public in Hong Kong.