BOCI-Prudential, a joint venture between Bank of China International and Prudential, has launched a new ETF on the Hong Kong Stock Exchange.

BOCI-Prudential has launched the WISE – Nasdaq Overseas China New Economy Companies Top 50 Index ETF.

Listed under the World Index Shares ETFs (WISE) fund umbrella, the WISE – Nasdaq Overseas China New Economy Companies Top 50 Index ETF (3182 HK) provides exposure to companies operating in China’s so-called ‘New Economy’ industries.

It is linked to the Nasdaq Overseas China New Economy Companies Top 50 Index, which consists of the 50 largest companies classified as belonging to the Consumer Goods, Health Care, Consumer Services or Technology sectors, as defined by the Industry Classification Benchmark

Eligible stocks include companies listed in Hong Kong or on US exchanges as American Depository Receipts (ADRs). Firms must have a market cap in excess of $250 million and three-month average daily dollar trading volume of at least $1m. Securities with a free float below 20% are not eligible for inclusion.

Constituents are weighted by modified market capitalization with the weight of the top five stocks capped at 8% each and the weight of the next four stocks capped at 4% each. Reconstitution and rebalancing occur on a quarterly basis.

Currently, the largest ten constituents in the index account for over half (51.3%) of the total index weight. The five largest names are Baidu (9.0%), Alibaba (8.6%), Tencent (7.5%), JD.com (6.4%), and NetEase (4.5%).

The ETF trades in Hong Kong dollars and comes with an expense ratio of 0.60%.