HSBC has launched the HSBC MSCI China ETF in Europe with a highly competitive Total Expense Ratio (TER) of 0.60%.
The HSBC MSCI China ETF is listed on the London Stock Exchange in sterling and US dollar trading currencies (Bloomberg ticker: HMCH LN for sterling / HMCD LN for US dollar). Further registrations and cross-listings in Europe are planned.
The HSBC MSCI China ETF aims to mirror the performance of the MSCI China Index, which is designed to offer exposure to the leading companies from China that non-domestic investors can freely access, typically through the Hong Kong stockmarket. As with all HSBC ETFs launched to date, the HSBC MSCI China ETF will use ‘physical replication’ in tracking its index. The fund will aim to invest in securities in generally the same proportions as in the index but may not take exposure to all securities and will use a technique known as ‘optimisation’ to replicate the index performance.
Farley Thomas, Head of ETFs at HSBC, says: “The secular China investment opportunity needs little introduction and it is natural for us to be adding a China ETF to our very wide range of investment products focused on this high-growth market. We are ushering in the Chinese New Year with our first China ETF in Europe and we aim to add considerably to our range of ETFs through the year.”
The HSBC MSCI China ETF marks the 15th ETF launch from HSBC in Europe. The first, the HSBC FTSE 100 ETF was introduced in August 2009. Since then, HSBC has added ETFs linked to a number of indices including, the EURO STOXX 50, MSCI Japan, FTSE 250, S&P®500, MSCI Europe, MSCI USA, MSCI Brazil, MSCI Pacific ex Japan, MSCI EM Far East, MSCI Turkey, MSCI World and S&P BRIC 40 indices.
Globally, HSBC has USD 7.5 billion in ETF assets under management and is a leading ETF product provider in Asia ex Japan with 13% market share.
