Ping-An launches HSCEI ETF on Shenzhen Stock Exchange

Oct 26th, 2018 | By | Category: Equities

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Ping-An UOB Asset Management has launched the Ping An-UOB Hong Kong Stock Hang Seng China Enterprise ETF (159960 CH) on Shenzhen Stock Exchange (SSE).

Ping-An launches HSCEI ETF on Shenzhen Stock Exchange

HSCEI provides exposure to 50 large-cap Chinese companies listed on the Hong Kong Stock Exchange.

The fund tracks the Hang Seng China Enterprises Index (HSCEI), which is formed of 50 equity securities and offers broad exposure to large-cap Chinese companies listed on the Hong Kong Stock Exchange.

The constituent securities are split between 40 H-shares and a total of 10 Red-chips and P-chips. These share classes differ with respect to where a company is incorporated.

H-shares are shares in companies incorporated in mainland China, while Red-chip and P-chip companies are domiciled outside of mainland China. P-chip companies are incorporated specifically in the Cayman Islands, Bermuda and the British Virgin Islands, and are private sector businesses operating in mainland China.

Constituents are weighted by free float market capitalization with a cap of 10% per issuer.

Stocks from the financials sector dominate the index allocation with a collective weight of 59.1% (23 constituents), followed by stocks from the energy sector (13.3%; 4 constituents) and telecommunications sector (7.0%; 2 constituents).

Three firms currently reach the applicable 10% cap – Ping An, Industrial & Commercial Bank of China, and China Construction Bank. The next largest constituents are Bank of China (7.0%), China Mobile (5.7%), and Tencent (5.7%).

China Southern Asset Management also offers an ETF on SSE that tracks the HSCEI. Launched in March 2018, the China Southern Hang Seng China Enterprise Index ETF (159954 CH) comes with a management fee of 0.60% and has some 200 million renminbi in assets under management.

The new ETF launch brings the number of ETFs linked to the Hang Seng index family to 71 with listings on 17 different stock exchanges across the world and representing more than $26 billion in assets under management.

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