HONG KONG–(BUSINESS WIRE)–CSOP Asset Management Limited (“CSOP”) is proud to announce the listing of CSOP MSCI China A 50 Connect ETF (stock ticker: 3003.HK) on Hong Kong Stock Exchange on 13 December 2021. Adopting a combination of physical representative sampling and synthetic representative sampling strategy, 3003.HK provides investment results that closely correspond to the performance of the MSCI China A 50 Connect Index (the “Index”). 3003.HK will enable global investors to capture the investment opportunities of A-Shares market in a more diversified and balanced way. The listing price is at around HKD 7.8 per unit with trading lot of 100 units and management fee of 0.99% per annum. Upon inception, 3003.HK has received around USD 120 million initial investment.
MSCI China A 50 Connect Index is an industry-balanced A-Shares broad-based benchmark index that represents the full market opportunity including China’s new economy. Built from MSCI China A Index, the Index contains 50 of the largest China A-Shares investable through the Stock Connect. With at least two largest stocks from each of the 11 GICS® sectors – corresponding to the index weights of the MSCI China A Index, it is designed to reflect broad diversification of China’s economy to avoid overweighting of financial or certain single sectors.1 Leading stocks in trending industries such as CATL, Kweichow Moutai, and Longji are among the top ten constituents of the Index. Compared with other similar indices in the market, MSCI China A 50 Connect Index has a rather balanced industry allocation with more new economy sectors exposure.1 The Index has returned by more than 170% in the past nine years, outpacing other mainstream broad-based indices in the long run.2 As of 1 December 2021, the total market capitalization of the index is USD 857.4 billion, and the number of constituent stocks is 50.3
The market has showed great investment interests in the newly introduced MSCI China A 50 Connect Index. The first batch of MSCI China A 50 ETFs launched in mainland China has already accumulated RMB 33.06 billion in size and traded RMB 8.4 billion on daily basis within only one month after listing.4 In addition, MSCI China A 50 Connect Futures – the first A-Shares Index Futures product listed on the HKEX – has seen an increasingly active trading volume with average daily turnover as high as USD 632 million.5
As a leading provider of China A-Shares ETFs in the Asia-Pacific area, CSOP has launched 12 China A-Shares-related products. Among all A-Shares ETFs listed on the HKEX, the total assets under management of the A-Shares ETFs issued by CSOP accounts for nearly 20%6, and the average daily turnover accounts for around 26%7. Being one of the largest and most active ETF providers in Hong Kong, CSOP has been committed to providing ETFs/ETPs to global investors for ten consecutive years. As of 30 November 2021, 5 out of 10 top traded ETFs/ ETPs (ranked by 3-month average daily turnover) are issued by CSOP8. CSOP has already established its brand as a reliable ETF issuer in Hong Kong and Asia.
Doug Walls, APAC Head of Index Products at MSCI, said, “The MSCI China A 50 Connect Index follows an innovative sector-balanced approach that aims to ensure diversified and balanced representation of the broader China A market. It is designed to enable international and domestic investors to track China’s sector leaders and get exposure to the overall market, including the potential opportunities in China’s new economy. The index marks another milestone since the inclusion of A-shares in MSCI indexes. At the same time, index-linked ETFs and other financial products will provide global investors with more opportunities to access the broad and diversified China market.”
“Since its establishment, CSOP has actively participated in the opening of China’s capital market and been dedicated to presenting the investment opportunities of China to global investors. Now we are excited to bring this revolutionary MSCI China A 50 Connect ETF – 3003.HK to global investors. We are confident that, thanks to its sound index ecosystem and balanced sector allocation with investable China’s sector leaders, 3003.HK will reignite global investors’ enthusiasm of investing in China A-Shares.” Comments Ms. Ding Chen, Chief Executive Officer of CSOP.
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 30 September 2021, CSOP has more than USD 10 billion in assets under management.
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IMPORTANT: Investment involves risks. Investment value may rise or fall.
CSOP MSCI China A50 Connect ETF
- The investment objective of the CSOP MSCI China A 50 Connect ETF (the “Sub-Fund”) is to provide investment results that, before deduction of fees and expenses, closely correspond to the performance of the MSCI China A 50 Connect Index (the “Index”). There is no assurance that the Sub-Fund will achieve its investment objective.
- 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.
- 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 securities incorporated in, or with the majority of revenue derived from, or with a principal place of business in the PRC mainland. The Sub-Fund’s investments are concentrated in a single country (i.e. the PRC mainland). As such, the Sub-Fund may be subject to greater volatility than broad-based funds, such as a global or regional fund, as the Index is more susceptible to fluctuations in value resulting from adverse conditions in the PRC mainland.
- The Sub-Fund is passively managed and the Manager will not have the discretion to adapt to market changes due to the inherent investment nature of the Sub-Fund. Falls in the Index are expected to result in corresponding falls in the value of the Sub-Fund.
Please note that the above listed investment risks are not exhaustive and investors should read the relevant Prospectus and Product Key Facts Statement in detail before making any investment decision.
CSOP MSCI China A50 Connect ETF is authorized by the Securities and Futures Commission (“SFC”) in Hong Kong. Such authorization does not imply any official recommendation by the SFC. This material and the information contained in this material shall not be regarded as an offer or solicitation of business in any jurisdiction to any person to whom it is unlawful to offer or solicit business in such jurisdictions. This offer or material and the information contained in it are for general information only and do not constitute financial, professional, investment or any other kind of advice in any way and shall not be considered as an solicitation to deal in any investment products. If you wish to receive advice on investment, please consult your professional legal, tax and financial advisers.
CSOP Asset Management Limited (“CSOP”) which prepared this material believes that information in this material is based upon sources that are believed to be accurate, complete, and reliable. However, CSOP does not warrant the accuracy and completeness of the information, and shall not be liable to the recipient or controlling shareholders of the recipient resulting from its use. CSOP is under no obligation to keep the information up-to-date.
Investment involves risks. Investment value may rise or fall. Past performance information presented is not indicative of future performance. Investors should refer to the relevant 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.
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Please refer to the offering documents for the index provider disclaimers.
This material is prepared by CSOP and has not been reviewed by the Securities and Futures Commission in Hong Kong.
Issuer: CSOP Asset Management Limited
1 Source: MSCI, as of 30 November 2021
2 Source: Bloomberg, 30 November 2012 – 19 November 2021. All index level is price return index. The MSCI China A 50 Connect Index was launched on 20 August, 2021. Data prior to the launch date is back-tested data (i.e. calculations of how the index might have performed over that time period had the index existed). There are frequently material differences between back-tested performance and actual results. Past performance — whether actual or back-tested — is no indication or guarantee of future performance.
3 Source: MSCI, as of 1 December 2021
4 Source: WIND, as of 7 December 2021
5 Source: Bloomberg, 18 October 2021 – 8 December 2021
6 Source: Bloomberg, as of 30 November 2021
7 Source: Bloomberg, as of 30 November 2021
8 Source: Bloomberg, as of 30 November 2021