New | ETF of China tech firms listed in US has Hong Kong debut
A Hong Kong listed exchange traded fund that tracks US listed China tech firms including Alibaba and Ctrip was up half a percent Wednesday morning on its trading debut.
The Xie Shares FTSE Chimerica ETF invests in 26 firms including Baidu and Sina, exposing investors to what the fund’s backers say is one of the hottest sectors in China. The ETF was launched at HK$8.07 and was trading at HK$8.11 on Wednesday afternoon.
“There is explosive growth and Chinese internet companies will be major beneficiaries,” said Elinor Leung, head of Asia telecom research at CLSA. CLSA acquired 49 per cent of Xie Shares management firm EIP last year.
Chinese mobile firms expect 600 million new 4G subscribers within 2 years as the country installs updated telecommunications infrastructure, said Leung.
Daily liquidity for the fund, which currently has US$26 million under management, comes from market makers CLSA and Commerzbank explained EIP CEO Tobias Bland. Trades are settled the same day New York time and the fund’s opening price is based on the close of day New York trading data.
