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Asia ETF Roundup (Industry) – October 2019

Singapore CPF Board listed new passive funds admission criteria; HK’s offshore and onshore Chinese equity ETFs see combined net outflows of USD 0.4 billion

 

Jackie Choy, CFA 07/11/19

For economic and market news relating to Asian ETFs, please refer to our “Asia ETF Roundup (Market) – October 2019”.

ETF Industry News

Singapore CPF Board Listed New Passive Funds Admission Criteria

The Central Provident Fund (CPF) Board of Singapore set out new admission criteria for passive funds under CPF Investment Schemes. Effective from 1 October 2019, passive funds are required to meet:

  • Good prospects of tracking index efficiently with low tracking error (based on assessment on qualitative and quantitative factors)
  • Total expense ratios (TERs) will be taken into consideration
  • Sales charge must not exceed prevailing sales charge cap of 1.5%
  • Physical replication (full or partial)
  • ETF has to be listed on SGX
  • Preferably have good tracking record for at least 3 years

 

Chinese Equity ETF Watch – HK-Domiciled Onshore and Offshore Chinese Equity ETF See Combined Net Outflows of USD 0.4 billion

  • Hong Kong-domiciled ETFs in the China Equity Category saw estimated outflows of USD 286 million million in October, coming mainly from the Hang Seng China Enterprises Index ETF (02828/82828). Meanwhile, ETFs in the China Equity – A-Shares Category saw estimated outflows of USD 71 million.
  • For the first ten months of 2019, Hong Kong-domiciled ETFs in the China Equity Category saw estimated outflows of USD 0.8 billion, while ETFs in the China Equity – A-Shares Category saw estimated outflows of USD 2.3 billion.
  • In the U.S. in October, we saw an estimated USD 6 million of net inflows from the iShares China Large-Cap ETF (FXI) and the iShares MSCI China ETF (MCHI) and an estimated USD 0.3 million of net outflows from the Xtrackers Harvest CSI 300 China A ETF (ASHR).

New Launches and Listings

Nikko AM Listed an ETF in Hong Kong

On 24 October, Nikko AM listed an ETF on the Stock Exchange of Hong Kong with both HKD and USD counters. The ETF tracks the iEdge-Factset Global Internet Index.

This listing puts the total number of ETF listings in Hong Kong at 211 (135 ETFs, 76 multiple counters, including 23 L&I Products).

Capital Investment Trust, CTBC and Fubon Listed 7 ETFs in Taiwan

On 18 October, Capital Investment Trust Corporation and CTBC listed 5 ETFs on the Taipei Exchange. These ETFs track the ICE BofAML 0-1 Year US Treasury Index, the ICE 1-5 Year US Ultra Large Cap Developed Markets Corporate Maximum 6-Year Original Maturity Index, the Bloomberg Barclays US 20+ Year BBB Corporate Capped Bond Index and the Bloomberg Barclays US 10+ Year Telecommunications Bond Index, respectively.

On 24 October, Fubon Asset Management listed 2 ETFs on the Taipei Exchange. These ETFs track the Bloomberg Barclays USD Insurance 10+ Year Selected Index and the Bloomberg Barclays USD Energy 10+ Year Selected Index, respectively.

These listings put the total number of ETFs listed in Taiwan at 217, of which 95 of them are bond ETFs.

E Fund, China AMC, Harvest, China Universal, Huatai-PB and Bosera Listed 7 ETFs in China

On 9 October, E Fund listed an ETF on the Shanghai Stock Exchange. The ETF tracks the SSE 50 Index.

On 16 October, China AMC listed an ETF on the Shanghai Stock Exchange. The ETF tracks the CSI 5G Communication Index. 

On 22 October, Harvest Fund Management listed an ETF on the Shanghai Stock Exchange. The ETF tracks the CSI Emerging Tech 100 Strategy Index.

On 25 October, China Universal and E Fund listed 2 ETFs on the Shanghai Stock Exchange. These ETFs tracks the CSI Yangtze River Delta Area Development Index and the CSI 800 Index, respectively.

On 28 October, Huatai-PineBridge Investments listed an ETF on the Shanghai Stock Exchange. The ETF tracks the CSI Technology 100 Index.

On 31 October, Bosera Asset Management listed an ETF on the Shenzhen Stock Exchange. The ETF tracks the CSI Smallcap 500 index。

These listings put the total number of ETFs listed in China at 240 (65 ETFs on the SZSE, 175 ETFs on the SSE).

KB Asset Management Listed an ETF in South Korea

On 24 October, KB Asset Management listed an active ETF on the Korea Exchange. The ETF tracks the KIS Financials Bond Index (Total Return).

This listing puts the total number of ETFs listed in South Korea at 445.

Bahana TCW, Avrist and Aurora Listed 3 ETFs in Indonesia

On 1 October, PT Bahana TCW Investment Management listed an ETF on the Indonesian Stock Exchange. The ETF tracks the Bisnis-27 Index.

On 18 October, PT Avrist Asset Management listed a fixed rate bond ETF on the Indonesian Stock Exchange.

On 25 October, PT Aurora Asset Management listed an ETF on the Indonesian Stock Exchange. The ETF tracks the FTSE Indonesia ESG Index.

These listings put the total number of ETFs listed in Indonesia at 35.

ETFs Launched in October 2019 in the Asia ex-Japan Region

About Author Jackie Choy, CFA

Jackie Choy, CFA  

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