Hang Seng Indexes has licensed the Hang Seng China (Hong Kong-listed) 25 Index (HSCHK25) to Fortune SG Fund Management to serve as the underlying index for the creation of a listed open-ended fund (LOF).
The LOF starts trading on the Shanghai Stock Exchange today.
The HSCHK25 tracks the performance of the 25 largest Hong Kong-listed Mainland companies, including H-shares, Red Chips and other Mainland companies.
With only 25 constituents, the market value coverage and turnover coverage of the index were 52.2 per cent and 42.8 per cent, respectively as at 31 March 2017 among all Mainland companies listed in Hong Kong.
The new LOF will bring the number of exchange-traded products linked to indexes in the Hang Seng Family of Indexes to 64 – with listings on 17 different stock exchanges across the world.
As at 31 March 2017, assets under management in exchange-traded products linked to indexes in the Hang Seng Family of Indexes had reached a total of more than USD28 billion.
