- New Hong Kong iron ore ETF offers investors enhanced choice in commodities trading
- Strengthens Hong Kong’s role as Asia’s ETF market of choice
Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to today (Friday) welcome its first iron ore futures Exchange Traded Fund (ETF) – SSIF DCE Iron Ore Futures Index ETF (stock code: 3047 / 9047) to trading on HKEX. This new ETF will offer investors more choice in capturing opportunities in the commodities space, at a relatively low cost.
The new iron ore ETF will track the performance of iron ore by investing directly in iron ore futures contracts. The newly listed ETF, is the first ETF launched by Shanxi Securities International Financial Holdings Limited (SSIF) in Hong Kong and will enable investors optimise their asset allocation, diversifying their investment risks.
“We are excited to see the first listing of an iron ore ETF at HKEX, another important step forward in our commitment to build a vibrant and comprehensive ETF market in Hong Kong,” said Brian Roberts, HKEX’s Head of Exchange Traded Products.
The introduction of an iron ore ETF at HKEX follows the first-time listings of two-time Inverse Products and Active ETFs last year – both new product categories have already become a significant part of the Hong Kong ETF market.
“With a continuously expanding portfolio of products, Hong Kong is fast-becoming Asia’s ETF hub, where investors can gain access to targeted exposure and complete their portfolio construction in one place,” added Roberts.
The average daily turnover of Exchange Traded Products (ETPs), including ETFs and Leveraged and Inverse Products (L&I Products), from 2 January 2020 to 25 March 2020 rose to $7.9 billion from $4.6 billion in the same period last year, signifying growing market interest in the product. L&I Products maintained strong momentum with one-day turnover reaching record high on 19 March 2020, at $3.99 billion.
Further information about Hong Kong-listed ETFs is available in HKEX website.
Hong Kong Exchanges and Clearing Limited (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.