Fubon launches Hang Seng H-Share ETF in Taiwan

Jul 31st, 2017 | By | Category: Equities

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Taipei-headquartered Fubon Asset Management has launched the Fubon Hang Seng H-Share ETF (00700) on Taiwan Stock Exchange, providing access to the performance of mainland China enterprises listed in Hong Kong.

Fubon launches Hang Seng H-Share ETF in Taiwan

The Hang Seng China Enterprises Index tracks the 40 largest and most liquid China enterprises listed in Hong Kong in the form of H shares.

The fund tracks the Hang Seng China Enterprises Index (HSCEI), created by Hang Seng Indices. The index tracks the performance of the 40 largest and most liquid China enterprises listed in Hong Kong in the form of H shares. Single stock caps of 10% are applied to prevent over-concentration.

As of the end of June 2017, HSCEI is heavily skewed towards the financials sector with 21 constituents and a 71.9% overall allocation. The second and third largest sector allocations are to energy (11.5%) and property construction (5.5%).The largest constituents are ICBC (10.1%), Bank of China (10.0%), Ping An (9.7%), CCB (9.4%) and China Life (6.5%).

The fund has a management fee of 0.50% and a custodian fee of 0.18%.

Earlier in 2016, Fubon launched two ETFs that track the HSCEI Short Index and the HSCEI Leveraged Index. The funds deliver double the daily return, and the inverse daily return, of HSCEI.

The new ETF brings the number of ETPs linked to indices in the Hang Seng family of Indices to 66 – with listings on 17 different stock exchanges across the world. As of 30 June 2017, assets under management in ETPs linked to indices in the Hang Seng family of Indices had reached a total of more than $27 billion.

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