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HONG KONG--(BUSINESS WIRE)--CSOP Asset Management Limited (CSOP) is pleased to announce its appointment as the Investment Manager for BCT (Pro) Greater China Equity Fund, a Constituent Fund (CF) under the BCT (MPF) Pro Choice (Master Trust Scheme), effective 20th April 2023. CSOP is a leading asset manager in Asia and the second largest ETF issuer in Hong Kong1, whereas BCT is a major pension product provider and one of the largest trust companies in Hong Kong. This collaborative endeavor enriches the investment prospects available to members of the MPF scheme.
Under the new arrangement, BCT (Pro) Greater China Equity Fund has transitioned from a passive allocation between two Index-Tracking Collective Investment Schemes (ITCIS) to a dynamic allocation across a pool of ITCIS that provides exposure to Greater China equity markets. CSOP actively adjusts the exposure to different Greater China markets comprising stocks listed in Hong Kong, Taiwan, Shanghai (A Shares and B Shares), Shenzhen (A Shares and B Shares) and offshore exchanges based on prevailing market conditions and its view on the different markets’ outlook and investment opportunities available.
As the new investment manager of BCT (Pro) Greater China Equity Fund, Andy Lau of CSOP Quantitative Investment is optimistic about the Greater China market. “While the first quarter of 2023 showed positive economic data, the subsequent months of April and May have been disappointing, adversely impacting the China recovery narrative. The equity markets, both onshore and offshore, have underperformed compared to global markets, reflecting a notable lack of investor confidence. However, service consumption remains strong, while global demand for goods is weak, signaling an imbalance in the global economy. Looking ahead, we anticipate the introduction of stimulus measures, such as cuts in the Loan Prime Rate (LPR) and expanding fiscal spending, to boost economic growth. Positive developments in geopolitical issues, including renewed talks between the United States and China, are improving sentiment.”
In regard to investment style, Andy Lau remarks, “We adopt a risk-on approach, favoring an overweight in equity. In the onshore A-share market, we see potential in policy-friendly sectors like state-owned enterprises (SOEs) and the digital economy. High-end manufacturing sectors focusing on technological self-reliance also offer opportunities. We are optimistic about the offshore Chinese equities, with a focus on technology and consumption sectors, in particular the industry leaders which are listed in Hong Kong. Strong Q2 2023 estimates, recovering earnings expectations, and support for private economy development contribute to their robust fundamentals. As sentiment improves, valuation pressure may ease, and therefore both China onshore and offshore markets are poised to benefit from this. Furthermore, our positive outlook extends to the broader Greater China market, which has demonstrated strong performance during the first half of the year. This is attributed to the soaring demand for chips and related electronic components, driven by the ever-expanding landscape of artificial intelligence technology.”
BCT Group’s Managing Director and CEO, Ms. Jamie Lee says, “We are delighted to welcome CSOP as our new partner. Having deeply rooted in Hong Kong for almost 25 years, BCT has all along adopted an open architecture fund platform by working with numerous well-regarded global investment management companies. With CSOP on board, we will create more values for our MPF members by leveraging their expertise in the ETF market. CSOP’s complimentary experience is significant in helping us to build stronger investment portfolios for our MPF members, and we are convinced that this partnership will help BCT further solidify our leading position in Hong Kong pension industry.”
CSOP Asset Management's CEO, Ms. Ding Chen comments, “We are very excited to take on the role as CF Manager for the BCT (Pro) Greater China Equity Fund. In recent years we have witnessed an increased usage of ETF by asset managers in Asia as a portfolio allocation tool, and with the number of new ETF products coming to the market, we feel encouraged that ETF will become an even more popular asset allocation tool for MPF products. CSOP has built its roots in Hong Kong over the last 15 years, and we are ready to provide more investment solutions to MPF members through different channels. We thank BCT for entrusting CSOP with this mandate, and look forward to building a fruitful relationship with BCT and contributing to HK’s MPF market.”
About CSOP
CSOP Asset Management (“CSOP”) is a leading ETF issuer in Asia, the second largest in Hong Kong#. Founded in 2008, CSOP was the first offshore asset manager set up by a Chinese asset management company. Dedicated to providing best in class investment solutions, CSOP serves institutional and retail clients with a diversified offering of index-tracking exchange traded funds/products, actively managed mutual funds, and investment advisory services, covering strategies from equity and fixed income products to money market and quantitative funds.
# Bloomberg, as of July 2023, excluding SPDR Gold Trust
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1 Bloomberg, as of July 2023, excluding SPDR Gold Trust