First A-share Industry Sector ETFs to Debut on HKEx
Products
17 Nov 2009
Hong Kong's Exchange Traded Fund (ETF) market further expands with a series of five Mainland A-share industry sector ETFs setting to debut on Wednesday, 18 November on the Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx).
The new Mainland A-share index ETFs are:
| Stock Code |
Name of ETF |
Benchmark index |
| 2846 |
iShares CSI 300 A-Share Index ETF |
CSI 300 Index |
| 3050 |
iShares CSI A-Share Energy Index ETF |
CSI 300 Energy Index |
| 3039 |
iShares CSI A-Share Materials Index ETF |
CSI 300 Materials Index |
| 2829 |
iShares CSI A-Share Financials Index ETF |
CSI 300 Financials Index |
| 3006 |
iShares CSI A-Share Infrastructure Index ETF |
CSI 300 Infrastructure Index |
With the listing of these five new ETFs, there will be a total of eight ETFs on Mainland A-share indices listed on the Exchange, and HKEx will be the first exchange with Mainland A-share industry sector ETFs.
All ETFs listed on the Exchange, including these five new iShares listings, are designated for market making and for short selling with tick rule exemption. The market makers for these five ETFs are Citigroup Global Markets Asia Limited, Credit Suisse Securities (Hong Kong) Limited and UBS Securities Hong Kong Limited.
On 18 November, the Exchange will have listed 42 ETFs. There are eight ETFs on Mainland A-share indices, seven on Hong Kong equity indices, 22 on other regional and international equity indices, two on commodities and three on bonds and money markets.
The three other Mainland A-share index ETFs are:
| Stock Code |
Name of ETF |
Benchmark index |
| 2823 |
iShares FTSE/Xinhua A50 China Index ETF |
FTSE/Xinhua China A50 Index |
| 2827 |
W.I.S.E. - CSI 300 China Tracker |
CSI 300 Index |
| 3024 |
W.I.S.E. - SSE50 China Tracker |
SSE50 Index |
Investors should note that all A-share ETFs use derivative instruments to synthetically replicate the performance of the underlying benchmarks. These ETFs are subject to counterparty risk of the derivative instruments' issuers and may suffer losses if such issuers default or fail to honour their contractual commitments. For a better understanding of the risks involved, investors are advised to read the ETFs' prospectuses in full prior to making any investment decisions. Information on the various risks of ETFs and their structures is available on the HKEx website.