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Tech Security First Hang Seng TECH Index ETF sets record for debut turnover – Reuters


Technology

Tech Security First Hang Seng TECH Index ETF sets record for debut turnover – Reuters

SHANGHAI, Aug 28 (Reuters) – The first exchange-traded fund tracking the Hang Seng TECH Index set a record on Friday for ETF listing-day turnover in Hong Kong and drew heavy inflows, highlighting investor fervour toward China’s top technology firms amid the Sino-U.S. tech war.The CSOP Hang Seng TECH Index ETF saw turnover of some HK$3…

Tech Security First Hang Seng TECH Index ETF sets record for debut turnover – Reuters

Tech Security

SHANGHAI, Aug 28 (Reuters) – The first exchange-traded fund tracking the Hang Seng TECH Index set a record on Friday for ETF listing-day turnover in Hong Kong and drew heavy inflows, highlighting financier fervour towards China’s leading technology companies amid the Sino-U.S. tech war.

The CSOP Hang Seng TECH Index ETF saw turnover of some HK$ 3 billion ($3871 million) on its launching, exceeding the Tracker Fund’s (2800 HK) previous record of HK$ 2.86 billion signed up in 1999, its supervisor CSOP Asset Management Ltd stated.

It also saw over $383 million in memberships, enhancing the fund’s size 16 times to $400 million on the very first day of listing.

The ETF traded at a substantial premium over its net property value on the secondary market at the start of the early morning session, triggering the fund manager to flag trading risks.

The CSOP ETF is the very first fund of its kind to track the newly-published Hang Seng TECH Index, which is comprised of the 30 most significant tech business noted in Hong Kong, consisting of Tencent Holdings and Alibaba Group.

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The fund provides investors “an easy, transparent and efficient investment tool to replicate the performance of the fast-growing Chinese technology sector,” CSOP Possession Management handling director Melody He said in a statement.

A looming innovation decoupling in between China and the United States amidst trade and security stress is accelerating home listings by Chinese tech companies, fuelling need for tech-focused funds in Hong Kong and China.

Other property managers including China Asset Management Co (ChinaAMC), Dacheng Fund Management Co and BlackRock are all preparing for ETFs tracking the Hang Seng TECH Index, dubbed the “Nasdaq of the east.”

$ 1 = 7.7501 Hong Kong dollars Reporting by Samuel Shen and Andrew Galbraith; Modifying by Jan Harvey

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