New Hong Kong ETF will track the 35 largest companies with least exposure to China risk
French asset manager Amundi says the ETF allows diversification away from mainland companies
French asset manager Amundi launched an exchange-traded fund (ETF) in Hong Kong on Tuesday, featuring low correlation to the mainland market.
The Amundi Hang Seng HK 35 Index ETF is the first ETF product introduced by Amundi to the Hong Kong market, and is also the first ETF to track the Hang Seng HK 35 Index.
Xiaofeng Zhong, chief executive north Asia of Amundi, said the companies tracked by the ETF have more than 50 per cent of revenue derived from areas outside mainland China, compared with the Hang Seng Index which sees more than half of its constituents under mainland Chinese names.
Individual companies in the index are capped at a 10 per cent weighting. Hang Seng Indexes launched the index in January 2003, but provided backdated tracking data to January 2000.
The three companies making up the largest weighting in the index are CK Hutchison Holdings, AIA and HSBC Holdings.
