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Asia ETF Roundup (Industry) – October 2017

RQFII ETFs saw net outflows of Rmb 0.7 billion in October; 4 ETFs will be delisted in Hong Kong

Jackie Choy, CFA 09/11/17

For economic and market news relating to Asian ETFs, please refer to our “Asia ETF Roundup (Market) – October 2017”.

ETF Industry News 

RQFII ETF Watch – Net Outflows in October Totaled Rmb 0.7 Billion

  • RQFII ETFs recorded estimated net outflows of Rmb 0.7 billion in October 2017 (2% of beginning and ending AUM). This compares with net outflows of Rmb 1.3 billion in September. The amount of net outflows in October netted off the accumulated net flows during the year, leaving year-to date net outflows at just Rmb 0.03 billion.
  • Almost all of the net outflows came from the CSOP FTSE China A50 ETF (02822), estimated at Rmb 1.1 billion. Meanwhile, the ChinaAMC CSI 300 Index ETF (03188) recorded net inflows, estimated at Rmb 0.3 billion.
  • The largest A-Share ETF by AUM in Hong Kong, iShares FTSE A50 China Index ETF (02823), recorded net outflows in October, estimated at Rmb 0.5 billion. During the first ten months of 2017, the estimated total net outflows from the iShares FTSE A50 China Index ETF amounted to Rmb 6.1 billion.

 

New Launches and Listings

ChinaAMC To Delist an ETF in Hong Kong
ChinaAMC announced that it would delist the ChinaAMC CES China A80 Index ETF (03180), due mainly to its small asset size, at Rmb 3.8 million as of 9 October 2017. The last trading day for the ETF would be on 9 November 2017.

Mirae Delists 2 ETFs in Hong Kong
Mirae Asset Global Investment announced that it would delist the Mirae Asset Horizons S&P Emerging Asia Consumer ETF (03054) and the Mirae Asset Horizons S&P Asia ex Japan Healthcare ETF (03153). The announcement noted the small net asset size of the ETFs being one of the factors considered in the decision to terminate the funds. The last trading day for the ETFs was 2 November 2017.

Harvest Delists 1 ETF in Hong Kong
Harvest Global Investments declared that it would delist the Harvest CSI Smallcap 500 Index ETF (03150). The total net assets of the fund stood at Rmb 2.7 million as of 18 October 2017. The last trading for the ETF will be on 20 November 2017.

Samsung, Hanwha and Korea Investment List 4 ETFs in Korea
On 17 October 2017, Samsung Asset Management listed two ETFs on the Korea Exchange. They track the KRX Minimum volatility Index and the FnGuide High Dividend Index, respectively.

On 17 October 2017, Hanwha Asset Management listed an ETF on the Korea Exchange, tracking the FnGuide Leading Industry Index.

On 17 October 2017, Korea Investment listed a synthetic ETF on the Korea Exchange, tracking the Dow Jones Internet Composite Price Return Index.

These listings put the total number of ETFs listed in Korea at 304.

Premia Partners List 2 ETFs in Hong Kong
On 24 October 2017, Premia Partners listed two strategic-beta China A-Share ETFs on the Hong Kong Stock Exchange. They track the CSI Caixin Bedrock Economy Index and the CSI Caixin New Economic Engine Index, respectively. Both of the ETFs employ optimised representative sampling and use the Stock Connect programmes to access the China A-Share market.

The CSI Caixin Bedrock Economy Index selects constituents based on economic size, financial health and volatility and weighted by economic size. The CSI Caixin New Economic Engine Index selects constituents based on market-cap, industry, ratio of non-fixed assets and financial health, and weighted by factors measuring growth and liquidity.

These listings put the total number of ETFs listings in Hong Kong at 186 ETFs (134 ETFs, 52 multiple counters) as of 31 October 2017.

Capital Investment Lists 1 ETF in Taiwan
On 27 October 2017, Capital Investment listed an ETF on the Taiwan Stock Exchange, tracking the Dow Jones US Real Estate Index.

This listing puts the total number of ETFs listed on the Taiwan Stock Exchange at 95.  

Lion Investment Lists 1 ETF in Singapore
On 30 October 2017, Lion Investment listed an ETF in the Singapore Stock Exchange, tracking the Morningstar Singapore REIT Yield Focus Index*.

This listing puts the total number of ETFs listed in Singapore at 76.

*Disclosure
Morningstar, Inc.'s Investment Management division licenses indexes to financial institutions as the tracking indexes for investable products, such as exchange-traded funds, sponsored by the financial institution. The license fee for such use is paid by the sponsoring financial institution based mainly on the total assets of the investable product. Please click here for a list of investable products that track or have tracked a Morningstar index. Neither Morningstar, Inc. nor its investment management division markets, sells, or makes any representations regarding the advisability of investing in any investable product that tracks a Morningstar index.

About Author Jackie Choy, CFA

Jackie Choy, CFA  

Jackie Choy, CFA is the Director of ETF Research for Morningstar Investment Management Asia