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HONG KONG--(BUSINESS WIRE)--CSOP Asset Management Limited (“CSOP”) is proud to announce the listing of CSOP Global Cloud Computing Technology Index ETF (stock ticker: 3194.HK) on the Hong Kong Stock Exchange (the “HKEX”). 3194.HK will track the performance of the Solactive Global Cloud Computing Technology Index (the “index”). With listing price at around HKD 15.53 per unit, trading lot of 100 shares and annual management fee of 0.99%, CSOP Global Cloud Computing Technology Index ETF will start to trade on 13 May, 2021. Upon inception, 3194.HK has received around USD 9.37 million initial investment.
Cloud computing is the modern practice of using remote servers and shared resources instead of a local network for storing, managing, processing and delivering data. Such technology enables access to information from anywhere with much less upfront investment. Cloud computing has further helped to lower costs, improving the reliability and security of business IT operations. Since the onset of Covid-19, telecommuting has accelerated the pace of business digitalization, further bolstering the rise in adoption of cloud. Worldwide spending on public cloud services is expected to reach USD 332.3 billion in 2021, an increase of 23.1% from 2020.1 Cloud computing has also become the critical technology sector amid the competition of the world’s tech giants and major economies. Amazon, Microsoft and Google combined accounted for 68.2% of the global cloud computing market in 2019.2 The U.S. is the most significant public cloud market with a projected spending of USD 124.6 billion in 2019.3 With the government’s support in new infrastructure development, China’s public cloud market also keeps evolving with high prospects, booming from RMB 96.3 billion in 2018 to RMB 375.4 billion in 2023, with an estimated CAGR of 31%.4
Cloud computing is one of the most in-demand and fastest-growing tech sectors boosted by global digitalization, especially during the pandemic. Comprehensively investing in the 50 most representative U.S. and Hong Kong listed companies with global operations in the field of cloud computing, the Solactive Global Cloud Computing Technology Index returns 54% over the prior 12 months.5 Weighted by free-float market capitalization of constituents and rebalanced quarterly, the index aims to capture the overall performance of the fast-growing worldwide cloud computing industry in a scientific and timely manner.6 As the end of April 2021, the total market cap of the index is USD 8.9 trillion.7 Innovatively adopting a physical representative sampling strategy to replicate the index, 3194.HK enables Hong Kong investors to grasp the investment opportunities of cloud computing industry in an easy and transparent way.
The pursuit of smart living has always been one of the development themes of human beings. As the pioneer ETF issuer in Hong Kong, CSOP’s ETFs/ETPs not only truly serve the purpose of asset allocation, but also the future prospects of investment. The launch of 3194.HK is one of the suite of CSOP thematic ETFs that offer future-defining investment opportunities.
“CSOP has already launched a series of future thematic ETFs. CSOP Hang Seng Tech Index ETF(3033.HK) and CSOP Yinhua CSI 5G Communications Theme ETF(3193.HK)8 visualize ways of betterment. Now CSOP Global Cloud Computing Technology Index ETF(3194.HK) further demonstrates a more intelligent concept of lifestyle. More CSOP’s future-themed ETFs will come to the market, broadening investors’ imagination of the future investment of human beings.” Comments Melody He, Managing Director, Head of Business Development and Product Strategy & Solutions.
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 March 2021, CSOP has more than USD 10 billion in assets under management.
This material has not been reviewed by the Securities and Futures Commission.
Issuer: CSOP Asset Management Limited
Please refer to the offering documents for the index provider disclaimer.
IMPORANT: Investment involves risks. Investment value may rise or fall. Past performance information presented is not indicative of future performance. Investors should refer to the relevant 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.
CSOP Global Cloud Computing Technology Index ETF (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 shares of the Sub-Fund (the “Shares”) are traded on the Stock Exchange of Hong Kong Limited (the “SEHK”) like stocks. The Sub-Fund is a physical ETF and invests primarily in US and Hong Kong listed companies that have business operations in the field of cloud computing. The Sub-Fund is denominated in USD.
- The Sub-Fund is not principal guaranteed and your investments may suffer losses. There is no assurance that the Sub-Fund will achieve its investment objective.
- The Solactive Global Cloud Computing Technology Index (the “Index”) is a new index. The Sub-Fund may be riskier than other exchange traded funds tracking more established indices with longer operating history.
- The Index is subject to geographical concentration risks as a result of tracking the performance of primarily the US and Hong Kong listed companies that have business operations in the field of cloud computing. The value of the Sub-Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the US and Hong Kong markets.
- The trading price of the Shares on the SEHK is driven by market factors such as the demand and supply of the Shares. Therefore, the Shares may trade at a substantial premium or discount to the Sub-Fund’s NAV.
Please note that the above listed investment risks are not exhaustive and investors should read the Prospectus and the Product Key Facts Statement in detail before making any investment decision.
Disclaimer
CSOP Global Cloud Computing Technology Index ETF is authorized by the Securities and Futures Commission ("SFC") in Hong Kong. Such authorization does not imply any official recommendation by the SFC. This material and the information contained in this material shall not be regarded as an offer or solicitation of business in any jurisdiction to any person to whom it is unlawful to offer or solicit business in such jurisdictions. This material and the information contained in it are for general information only and do not constitute financial, professional, investment or any other kind of advice in any way and shall not be considered as an offer or solicitation to deal in any investment products. If you wish to receive advice on investment, please consult your professional legal, tax and financial advisers.
CSOP Asset Management Limited (“CSOP”) which prepared this material believes that information in this material is based upon sources that are believed to be accurate, complete, and reliable. However, CSOP does not warrant the accuracy and completeness of the information, and shall not be liable to the recipient or controlling shareholders of the recipient resulting from its use. CSOP is under no obligation to keep the information up-to-date.
This material should not be reproduced or made available to others without the written consent of CSOP.
Please refer to the offering documents for the index provider disclaimer.
This material is prepared by CSOP and has not been reviewed by the Securities and Futures Commission in Hong Kong.
Issuer: CSOP Asset Management Limited
1 Source: Gartner, April 2021
2 Source: Gartner, August 2020
3 Source: IDC Media Center
4 Source: China Academy of Information and Communications Technology, the White Paper of Cloud Computing, published in July 2020
5 Source: Bloomberg, as of 30 April, 2021. All information for an index prior to its launch date is back-tested. Back-tested performance reflects hypothetical historical performance. The hypothetical performance figure is for illustrative purpose only. Not indicative of actual future performance, which could differ substantially.
6 Source: Solactive AG
7 Source: Solactive AG, Bloomberg
8 CSOP Yinhua CSI 5G Communications Theme ETF is a feeder fund. Its master fund, Yinhua CSI 5G Communication ETF, is not authorized by the Securities and Futures Commission for direct offering to the public in Hong Kong.