Hong Kong-based asset manager Premia Partners has introduced US dollar-denominated share classes for two multi-factor China A-shares ETFs listed in Hong Kong.

The ETFs provide exposure to different segments of the China A-shares universe while screening stocks using a multi-factor process.

Investors with US dollar liquidity can now access the Premia CSI Caixin China New Economy ETF and Premia CSI Caixin China Bedrock Economy ETF through the USD trading lines 9173 HK and 9803 HK, respectively.

The ETFs track CSI smart beta indices provided by Caixin Rayliant Smart Beta, led by Dr. Jason Hsu, chairman and CIO of Rayliant Global Investors, and co-founder and vice-chairman of Research Affiliates.

The Premia ETFs leverage Caixin Rayliant’s academic research, which identifies several equity factors – including value, quality, low volatility, size – as having the potential to outperform the broader A-shares equity market over the long term.

The fundamental beta approach also introduces a buy-low, sell-high discipline into factor investing.

The Premia CSI Caixin China New Economy ETF tracks the CSI Caixin New Economic Engine Index, providing exposure to leading companies from new economy industries, selected based on non-fixed asset size, financial health and growth characteristics.

The Premia CSI Caixin China Bedrock Economy ETF tracks the CSI Caixin Bedrock Economy Index, providing exposure to leading companies that drive the mainstream economy of China, based on economic size, financial health, and low-risk characteristics.

The ETFs consist of approximately 300 Shanghai and Shenzhen listed stocks each, and utilize the Stock Connect Program to physically replicate their desired exposure. Each fund has a total expense ratio of 0.50%.