HONG KONG–(BUSINESS WIRE)–CSOP Asset Administration Restricted (“CSOP”) is proud to announce the itemizing of CSOP STAR 50 Index ETF (inventory ticker: 3109.HK) on Hong Kong Inventory Trade. As the primary Hong Kong-listed ETF monitoring the newly launched SSE Science and Know-how Innovation Board 50 Index (the “STAR 50 Index” or the “index”) in 2020, CSOP STAR 50 Index ETF will allow international buyers to catch the funding alternatives introduced by the quick rising high-tech firms and strategic rising firms which are listed in Shanghai Inventory Trade Star Market (the “Star market”). With itemizing worth at round HKD15.6 per unit, buying and selling lot of 100 and administration price of 0.99%, CSOP STAR 50 Index ETF will begin to commerce on 10 February, 2021. Upon inception, 3109.HK has obtained RMB92.3 million preliminary funding.
Formally known as the Shanghai Inventory Trade Science and Know-how Innovation Board, the Star market is China’s reply to the Nasdaq. As certainly one of Asia’s quick rising inventory boards, it now contains greater than 222 corporations,1 with complete market worth of greater than USD550 billion. It’s believed the Star market might be in a powerful place to draw a number of listings of rising Chinese language enterprises whereas US is clamping down on the itemizing of Chinese language firms.
Towards the backdrop of the rising of enterprises of science and know-how innovation in China, STAR 50 Index tracks the 50 securities with largest market capitalization and good liquidity listed on the Star market.2 Designed to serve China’s nationwide technique of science and know-how innovation, the index consists of the sectors which might outline the longer term growth together with data know-how, well being care, telecommunication providers, industrials, shopper discretionary and supplies. All of the index constituent firms have edges in core applied sciences and revel in broad recognition from the market. In line with historic information, the STAR 50 Index has achieved returns of 4.69% for the reason that starting of 2021 to 27 January, 2021, comparable with CSI 500 Index of three% return. The index has a complete market capitalisation of RMB477.5 billion as of 31 December 2020. 3 The merchandise monitoring the STAR 50 Index in home China has already collected to RMB27.4 billion as of three February 2021. 4
As a number one ETF supervisor in Hong Kong, CSOP has already been devoted to offering ETFs/ETPs to international buyers for 9 years. With half of the highest traded ETFs/ETPs in Hong Kong being from CSOP5, CSOP has already established its model as a dependable ETF issuer in Hong Kong.
Melody He, Managing Director, Head of Enterprise Growth and Product Technique & Options, says “STAR 50 Index is broadly deemed as an index representing efficiency of the rising stars within the science and know-how sectors in China and we’re very glad to carry 3109.HK monitoring this index to the market. Know-how is reshaping our life is an unprecedented tempo. The itemizing of 3109.HK along with ICBC CSOP S&P New China Sectors ETF (3167.HK), CSOP Hold Seng TECH Index ETF (3033.HK), CSOP Yinhua CSI 5G Communications Theme ETF (3193.HK)6 will assist buyers seize the funding alternatives amid the fast-growing China in a simple and clear manner.”
For particulars, together with threat elements, please consult with the providing paperwork.
About CSOP Asset Administration Restricted
CSOP Asset Administration Restricted (“CSOP”) was based in 2008 as the primary offshore asset supervisor arrange by a regulated asset administration firm in China. With a devoted give attention to China investing, CSOP manages private and non-private funds, in addition to offering funding advisory providers to Asian and international buyers. As well as, CSOP is greatest generally known as an ETF chief in Asia. As of 31 December 2020, CSOP had US$ 10 billion in belongings underneath administration.
This materials has not been reviewed by the Securities and Futures Fee.
Issuer: CSOP Asset Administration Restricted
Please consult with the providing paperwork for the index supplier disclaimer.
IMPORTANT: Funding includes dangers. Funding worth could rise or fall. Previous efficiency data offered is just not indicative of future efficiency. Traders ought to consult with the Prospectus and the Product Key Details Assertion for additional particulars, together with product options and threat elements. Traders mustn’t base on this materials alone to make funding choices.
The CSOP STAR 50 Index ETF (the “Sub-Fund”) is a sub-fund of the CSOP ETF Collection OFC, which is a public umbrella open-ended fund firm established underneath Hong Kong regulation with variable capital with restricted legal responsibility and segregated legal responsibility between sub-funds. The Sub-Fund is a bodily ETF and invests primarily in China A-Shares listed on the Science and Know-how Innovation Board of Shanghai Inventory Trade (the “STAR Board”) of the Folks’s Republic of China primarily by way of the Renminbi Certified International Institutional Investor standing of the Supervisor and/or the Shanghai-Hong Kong Inventory Join. The funding goal of the Sub-Fund is to supply funding outcomes that, earlier than deduction of charges and bills, intently correspond to the efficiency of the SSE Science and Know-how Innovation Board 50 Index (the “Index”). The Sub-Fund is denominated in RMB.
- The Sub-Fund is just not principal assured and your investments could endure losses. There isn’t a assurance that the Sub-Fund will obtain its funding goal.
- The Index is a brand new index. The Sub-Fund could also be riskier than different trade traded funds monitoring extra established indices with longer working historical past.
- Investments within the STAR Board could lead to vital losses for the Sub-Fund and its buyers.
- The Sub-Fund’s investments are concentrated in firms specializing in know-how innovation. Most of the firms specializing in know-how innovation have a comparatively quick working historical past. Know-how firms are sometimes characterised by comparatively greater volatility in worth efficiency when in comparison with different financial sectors. Firms within the know-how sector additionally face intense competitors, and there may additionally be substantial authorities intervention, which can have an hostile impact on revenue margins. Fast adjustments may render out of date the services supplied by these firms. These firms are additionally topic to the dangers of loss or impairment of mental property rights or licences, cyber safety dangers leading to undesirable authorized, monetary, operational and reputational penalties. The worth of the Sub-Fund could also be extra risky than that of a fund having a extra various portfolio of investments.
- The Sub-Fund’s investments are concentrated in a single geographical area (i.e. mainland China) and the STAR market. As such, it could be topic to larger volatility than broad-based funds.
- Mainland China is taken into account an rising market and investments within the mainland China market could also be topic to larger financial, political, tax, international trade, regulatory, volatility and liquidity dangers, than that in additional developed international locations. The A-Shares market is risky and unstable (e.g. attributable to suspension of explicit shares or authorities intervention) than these in additional developed markets.
- The buying and selling worth of the Shares on the SEHK is pushed by market elements such because the demand and provide of the Shares. Subsequently, the Shares could commerce at a considerable premium or low cost to the Sub-Fund’s NAV.
Please word that the above listed funding dangers usually are not exhaustive and buyers ought to learn the Prospectus and the Product Key Details Assertion intimately earlier than making any funding resolution.
1 Supply: Shanghai Inventory Trade, as of 27 January, 2021
2 Supply: China Securities Index Co.,Ltd, 27 November, 2019- 27 November, 2020
3 Supply: Bloomberg
4 Supply: Bloomberg
5 Supply: Bloomberg, common day by day turnover from January 1, 2018 to December 31, 2019
6 CSOP Yinhua CSI 5G Communications Theme ETF is a feeder fund. Its grasp fund, Yinhua CSI 5G
Communication ETF, is just not approved by the Securities and Futures Fee for direct providing to the general public in Hong Kong.