HONG KONG, Dec. 13, 2021 /PRNewswire/ -- Hong Kong Exchanges and Clearing Limited (HKEX) is today (Monday) pleased to welcome the listings of the first ETFs to track the MSCI China A50 Connect Index.
A total of three new ETFs that track the MSCI China A50 Connect Index are listing on HKEX, available in HKD, USD and RMB counters.
CSOP MSCI China A 50 Connect ETF
2839 (HKD) / 82839 (RMB) / 9839 (USD)
ChinaAMC MSCI China A 50 Connect ETF
3111 (HKD) / 83111 (RMB)
E Fund (HK) MSCI China A50 Connect ETF
HKEX Co-Head of Markets Wilfred Yiu said: "We warmly welcome the listing of these new ETFs tracking MSCI China A50 Connect Index. They will join increasingly diversified Connect product ecosystem in Hong Kong, enriching choice for investors around the world, and providing another investment option for those seeking exposure to China assets. HKEX looks forward to working with its clients and the market on continuing to build Hong Kong's attractiveness as an offshore RMB hub and international trading, risk management and capital raising centre."
Since its launch in 2014, Stock Connect, the landmark mutual market access programme linking the Hong Kong and Mainland China equity markets, has become the key channel for international investors to access the A-shares market and has helped facilitate the inclusion of Chinese A-shares into key global indices. Nowadays, over 70% of international holding of A-shares are through Stock Connect.
In October, HKEX successfully launched the MSCI China A50 Connect Index Futures, providing an efficient risk management tool for investors to manage their Stock Connect A-shares equity exposure in Hong Kong. The notional open interest of the contract exceeded US$2 billion in the first month of launch, with daily average trading volume of 11,927 contract in November.
The MSCI China A50 Connect Index is designed to have a comprehensive representation of the Chinese economy by including 50 of the largest stocks in the China A-share large-cap universe, and targeting at least two stocks from each sector. The index comprises 50 Stock Connect eligible underlying stocks and historically has a high correlation to the performance of main MSCI A-share indices.
Hong Kong's ETF market continues to go from strength to strength. The average daily turnover of ETFs for the first 11 months of 2021 was HK$7.8 billion, an increase of 20% when compared with HK$6.5 billion for the same period last year. The ETF market is also seeing growing and broader exposure to China's economy, with assets under management of China-focused ETFs accounting for 25% of the Hong Kong ETF market as of end-November.
Further information about Hong Kong-listed ETPs is available on the HKEX website.
HKEX is one of the world's major exchange groups, and operates a range of equity, commodity, fixed income and currency markets. HKEX is the world's leading IPO market and as Hong Kong's only securities and derivatives exchange and sole operator of its clearing houses, it is uniquely placed to offer regional and international investors access to Asia's most vibrant markets.
HKEX is also the global leader in metals trading, through its wholly owned subsidiaries, The London Metal Exchange (LME) and LME Clear Limited. This commodity franchise was further enhanced with the launch of Qianhai Mercantile Exchange (QME), in China, in 2018.
HKEX launched the pioneering Shanghai-Hong Kong Stock Connect programme in 2014, further expanded with the launch of Shenzhen Connect in 2016, and the launch of Bond Connect in 2017.