E Fund (HK) launches MSCI China A50 ETF (HKEX Code: 3111) along with ChinaAMC (HK) and CSOP
HONG KONG, Dec. 13, 2021 /PRNewswire/ — E Fund Management (HK) announced the launch of the “E Fund (HK) MSCI China A50 Connect ETF” or “E Fund A50” (stock code 03111) on the HKEX, listing on December 14th. The ETF tracks the performance of the MSCI China A50 Connect Index, which selects 50 stocks from the component stocks in the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, focusing on China A Shares core assets. At the same time, two other asset management companies in Hong Kong, ChinaAMC (HK) and CSOP have already launched similar ETF products along with E Fund (HK) this week.
The counter codes for E Fund A50 are 03111 for HKD and 83111 for RMB respectively. Each board lot is 100 unit, priced at 2.6RMB. And minimum subscription fee per lot is 260 RMB. Nick Li, Director of E Fund HK Product and Solution, mentioned that the companies contained in the MSCI China A50 Connect Index have two distinct characteristics. First, the index focuses on larger companies with high index weights. And second, it seeks broad sector exposure for greater diversification. The index selects the two largest securities from each of the 11 GICS® sectors and the remaining 28 securities are selected from the parent index MSCI China A by index weight until the total count reaching 50. The index has increased the proportion of the new economy, and raised the specific weights of new energy, electronics, medicine and other sectors, each industry accounting for no more than 20%. In the era of carbon neutrality and peak emissions, aging population, consumption upgrade, and technology innovations, this change of index weighting can better reflect the future prospects of China’s development.
Compared with similar indexes such as the FTSE A50 and Shanghai Stock Exchange 50 Index, the MSCI China A50 index has strengthened the proportion of Contemporary Amperex Technology Company, which ranks first in the index. The new-energy industry leader CATL has a total market value of about 1.5 trillion.
Although focusing on the large-cap blue chip stocks, the index has more balanced industry distributions, designed with future in mind, making it a more effective index reflecting China A-share development. From November 30, 2012, which is the base date of the index, through nine years ending November 30, 2021, the index has a cumulative return rate of nearly 170%. In June 12, 2015, the index reached its first peak because of bull market, and reached further new heights ever since. By the end of November, 2021, the index’s return rate was nearly 30% comparing to the peak of June 12, 2015.(Data collects from Wind)
Three Hong Kong asset management companies headed by E Fund (HK) will launch ETF products that track the performance of the MSCI China A50 Connect Index. The remaining two products are ChinaAMC MSCI China A50 Connect ETF (02839) and CSOP MSCI China A50 Connect ETF (03003).