E Fund launches China alcohol ETF in Hong Kong

Feb 16th, 2023 | By | Category: Equities

E Fund Management has launched a new ETF in Hong Kong providing exposure to Chinese A-share stocks of companies operating in the alcohol industry.

E Fund launches China alcohol ETF in Hong Kong

The ETF targets Mainland Chinese companies operating in the alcohol industry.

The E Fund (HK) CSI Liquor Index ETF has been listed on the Stock Exchange of Hong Kong in Hong Kong dollars (3189 HK) and Chinese renminbi (83189 HK).

The fund is linked to the CSI Liquor Index which selects its constituents from the CSI All Share universe, a broad benchmark covering large, mid, and small-cap companies listed on the Shanghai and Shenzhen stock exchanges.

The index first ranks the initial universe by average daily trading volume and deletes the bottom 20% of securities. It then selects companies within the consumer staples sector that derive the majority of their revenue from the production and distribution of liquor.

Constituents are weighted by float-adjusted market capitalization subject to a single security cap of 15%. Reconstitution and rebalancing occur semi-annually in June and December.

As of the end of January, the index contained 18 constituents with the largest positions being Wuliangye Yibin (16.1%), Luzhou Lao Jiao (15.6%), Kweichow Moutai (14.4%), Shanxi Xinghuacun Fen Wine Factory (14.3%), and Jiangsu Yanghe Brewery (11.0%).

The ETF comes with a management fee of 0.80%.

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