Affin Hwang AM lists new China ETF on main market

0

KUALA LUMPUR: ​​​​​​Affin Hwang Asset Management Bhd’s TradePlus S&P New China Tracker made its debut on the Bursa Securities main market yesterday, in line with expansion of its exchange-traded fund (ETF) offerings.

The Fund is an equity ETF that provides investors exposure to China’s new economy and to participate in positive growth trends and consumption patterns within its changing economic structure from investment-driven to a consumption and services-led economy.

“Benchmarked against the S&P New China Sectors Ex A-Shares Index, the fund will employ a full replication strategy to closely track the performance of the index, providing an efficient manner for investors to gain broad exposure to Chinese listed companies in its fast-growing consumption and service-oriented industries,” Affin Hwang said in a statement yesterday.

The fund will invest a minimum of 70 per cent of the fund’s net asset value (NAV) in authorised securities to meet its investment objective, with an option to invest a maximum of 20 per cent of the fund’s NAV in derivatives or collective investment
schemes.

“The remaining balance shall be invested in money market instruments and/or deposits for liquidity,” it said.

Managing director Teng Chee Wai said since the listing of its first ETF (TradePlus Shariah Gold Tracker) on Bursa in 2017, the company was proud to roll-out its next passive investment offering to the market in quick succession.

“Through this fund, local investors will be able to participate in one of the biggest investment themes globally as we witnessed China’s seismic shift from an investment-driven economy that was centred primarily on infrastructure and manufacturing to a more knowledge-driven economy that is focused on research and development and innovation,” Teng added. — Bernama