HONG KONG--(BUSINESS WIRE)--CSOP Asset Management Limited (“CSOP”) is proud to announce the listing of CSOP Hang Seng TECH Index ETF (stock ticker: 3033.HK) on Hong Kong Stock Exchange. As the first ETF tracking the newly launched Hang Seng TECH index, CSOP Hang Seng TECH Index ETF will enable global investors to catch the investment opportunities brought by the fast growing technology sector and the increasing number of technology companies that are listed in Hong Kong. With listing price at around HKD 7.5 per unit, trading lot of 200 and management fee of 0.99%, CSOP Hang Seng TECH Index ETF will start to trade on August 28, 2020. Upon inception, 3033.HK has received USD 24million initial investment.
Under the background of more and more Chinese technology giants choosing Hong Kong as the secondary listing place, Hang Seng TECH Index was launched on 27 July 2020 to track the 30 largest technology companies listed in Hong Kong. Designed as one of the flagship indices of Hang Seng Index Company Limited, the index consists of Hong Kong-listed companies that have high business exposure to selected technology themes, including internet, fintech, cloud, e-commerce and digital activities. Eligible stocks will be further filtered by criteria of whether they operate via a technology-enabled platform, their research and development expenses to revenue ratio, and their revenue growth. The qualified largest 30 stocks in terms of market capitalization will be selected as index constituents with quarterly review. In consideration of the upcoming sizable technology companies, a Fast Entry Rule will also be applied to make sure a timely inclusion of these qualified potential constituents. According to Hang Seng Indexes Company Limited’s back-testing data, the Hang Seng TECH Index would have achieved significant returns of 36.2% and 35.3% for the full year of 2019 and the first half of 2020 respectively. 1
As a leading ETF manager in Hong Kong, CSOP has already dedicated to providing ETFs/ETPs to global investors for 8 years. With half of the top traded ETFs/ETPs in Hong Kong being from CSOP2, CSOP has already established its brand as a reliable ETF issuer in Hong Kong.
“We are excited to partner and support CSOP with the launch of market first’s Hang Seng Tech Index ETF,” said Patrick Wong, Head of China Sales and Business Development, HSBC Securities Services. “The new tech index aims to capture increasing investor interest in the technology sector which closely ties with the new economy theme. The introduction of such ETFs not only provide more investment avenues for investors but also furthers Hong Kong's position as an international financial hub.”
Anita Mo, Deputy Chief Executive Officer of Hang Seng Indexes Company, said: "The listing of Hang Seng TECH Index ETF product in Hong Kong will help to promote Hong Kong as a major financial center for international technology companies and attract more investment funds into related ETFs. Following the launch of Hang Seng TECH Index (“HSTECH”), we hope that our index will reflect the performance of technology sector which is a growing segment in Hong Kong and attract more HSTECH Index-linked ETF products to be offered in the market."
Melody He, Managing Director, Head of Business Development and Product Strategy & Solutions, said: “Reported as Nasdaq of the east by many western medias, The Hang Seng TECH Index is widely deemed as a benchmark of technology theme stocks listed in Hong Kong. Tracking the Hang Seng TECH Index, 3033.HK will meet the increasing investment demand of this technology sector among investors, offering market an easy, transparent and efficient investment tool to replicate the performance of the fast-growing Chinese technology sector.”
For details, including risk factors, please refer to the offering documents.
About CSOP Asset Management Limited
CSOP Asset Management Limited (“CSOP”) was founded in 2008 as the first offshore asset manager set up by a regulated asset management company in China. With a dedicated focus on China investing, CSOP manages public and private funds, as well as providing investment advisory services to Asian and global investors. In addition, CSOP is best known as an ETF leader in Asia. As of 31 July 2020, CSOP had US$ 8.2 billion in assets under management.
This material has not been reviewed by the Securities and Futures Commission. Issuer: CSOP Asset Management Limited
Index Provider Disclaimer
The Hang Seng TECH Index is published and compiled by Hang Seng Indexes Company Limited “HSIL” pursuant to a licence from Hang Seng Data Services Limited (“HSDS”). The mark and name “Hang Seng TECH Index” is proprietary to HSDS. HSIL and HSDS have agreed to the use of, and reference to, the Hang Seng TECH Index by the Manager and the Trustee and their respective duly appointed agents in connection with CSOP Hang Seng TECH Index ETF, BUT NEITHER HSIL NOR HSDS WARRANTS OR REPRESENTS OR GUARANTEES TO ANY BROKER OR HOLDER OF THE CSOP HANG SENG TECH INDEX ETF OR ANY OTHER PERSON (i) THE ACCURACY OR COMPLETENESS OF THE HANG SENG TECH INDEX AND ITS COMPUTATION OR ANY INFORMATION RELATED THERETO; OR (ii) THE FITNESS OR SUITABILITY FOR ANY PURPOSE OF THE HANG SENG TECH INDEX OR ANY COMPONENT OR DATA COMPRISED IN IT; OR (iii) THE RESULTS WHICH MAY BE OBTAINED BY ANY PERSON FROM THE USE OF THE HANG SENG TECH INDEX OR ANY COMPONENT OR DATA COMPRISED IN IT FOR ANY PURPOSE, AND NO WARRANTY OR REPRESENTATION OR GUARANTEE OF ANY KIND WHATSOEVER RELATING TO THE HANG SENG TECH INDEX IS GIVEN OR MAY BE IMPLIED. The process and basis of computation and compilation of the Hang Seng TECH Index and any of the related formula or formulae, constituent stocks and factors may at any time be changed or altered by HSIL without notice. TO THE EXTENT PERMITTED BY APPLICABLE LAW, NO RESPONSIBILITY OR LIABILITY IS ACCEPTED BY HSIL OR HSDS (i) IN RESPECT OF THE USE OF AND/OR REFERENCE TO THE HANG SENG TECH INDEX BY THE MANAGER IN CONNECTION WITH CSOP HANG SENG TECH INDEX ETF; OR (ii) FOR ANY INACCURACIES, OMISSIONS, MISTAKES OR ERRORS OF HSIL IN THE COMPUTATION OF THE HANG SENG TECH INDEX; OR (iii) FOR ANY INACCURACIES, OMISSIONS, MISTAKES, ERRORS OR INCOMPLETENESS OF ANY INFORMATION USED IN CONNECTION WITH THE COMPUTATION OF THE HANG SENG TECH INDEX WHICH IS SUPPLIED BY ANY OTHER PERSON; OR (iv) FOR ANY ECONOMIC OR OTHER LOSS WHICH MAY BE DIRECTLY OR INDIRECTLY SUSTAINED BY ANY BROKER OR HOLDER OF THE CSOP HANG SENG TECH INDEX ETF OR ANY OTHER PERSON DEALING WITH CSOP HANG SENG TECH INDEX ETF AS A RESULT OF ANY OF THE AFORESAID, AND NO CLAIMS, ACTIONS OR LEGAL PROCEEDINGS MAY BE BROUGHT AGAINST HSIL AND/OR HSDS in connection with CSOP Hang Seng TECH Index ETF in any manner whatsoever by any broker, holder or any other person dealing with CSOP Hang Seng TECH Index ETF. Any broker, holder or other person dealing with CSOP Hang Seng TECH Index ETF does so therefore in full knowledge of this disclaimer and can place no reliance whatsoever on HSIL and HSDS. For the avoidance of doubt, this disclaimer does not create any contractual or quasi-contractual relationship between any broker, holder or other person and HSIL and/or HSDS and must not be construed to have created such relationship.
1 Data source: Hang Seng Indexes Company Limited https://www.hsi.com.hk/static/uploads/contents/en/news/pressRelease/20200720T160000.pdf
All information for an index prior to its launch date is back-tested, back-tested performance reflects hypothetical historical performance. Hypothetical past performance information is not indicative of future performance.
2 Data source: Bloomberg, January 1, 2018-December 31, 2019
IMPORTANT: Investment involves risks. Investment value may rise or fall. Past performance information presented is not indicative of future performance. Investors should refer to the Prospectus and the Product Key Facts Statement for further details, including product features and risk factors. Investors should not base on this material alone to make investment decisions.
The CSOP Hang Seng TECH Index ETF (the “Sub-Fund”) is a sub-fund of the CSOP ETF Series (“Trust”), which is an umbrella unit trust established under Hong Kong law. The Sub-Fund is a passively managed index tracking ETF authorised under Chapter 8.6 of the Code on Unit Trusts and Mutual Funds. The units of the Sub-Fund are traded on the Stock Exchange of Hong Kong Limited (the “SEHK”) like stocks.
- The Sub-Fund is not actively managed. The Manager will not have the discretion to adapt to market changes due to the inherent investment nature of the Sub-Fund. Falls in Hang Seng TECH Index are expected to result in corresponding falls in the value of the Sub-Fund.
- The Sub-Fund’s investments are concentrated in companies with a technology theme. Many of the companies with a high business exposure to a technology theme have a relatively short operating history. Technology companies are often characterised by relatively higher volatility in price performance when compared to other economic sectors. Companies in the technology sector also face intense competition, and there may also be substantial government intervention, which may have an adverse effect on profit margins. Rapid changes could render obsolete the products and services offered by these companies. These companies are also subject to the risks of loss or impairment of intellectual property rights or licences, cyber security risks resulting in undesirable legal, financial, operational and reputational consequences.
- The Sub-Fund may be exposed to risks associated with different technology sectors and themes (including industries, consumer discretionary, healthcare, financials, information technology, internet (including mobile), fintech, cloud, e-commerce, or digital). A downturn in the business for companies in these sectors or themes may have adverse effects on the Sub-Fund.
- Although the Manager will use its best endeavours to put in place arrangements so that at least one market maker will maintain a market for the units and that at least one market maker gives not less than 3 months’ notice prior to terminating market making arrangement under the relevant market maker agreement, liquidity in the market for the units may be adversely affected if there is no or only one market maker for the units. There is also no guarantee that any market making activity will be effective.
Please note that the above listed investment risks are not exhaustive and investors should read the Prospectus in detail before making any investment decision.
