Lion international investorsandocbc securitieshave partnered to start singapores first technology-focused change traded investment, rolling on a etf that tracks the recently launched hang seng tech list, that has currently spawned a host of new items in hong kong.
The launch of this etf comes simply days following the suspension system of the very predicted preliminary public offering ofant groupthat had been set to debut in both hong kong and shanghai, along with the introduction of stricter antitrust laws and regulations in asia, which analysts advise may significantly dampen buyer interest when it comes to method.
The lion-ocbc securities hang seng tech etf replicates the overall performance associated with the hang seng tech list, which tracks the 30 largest technology businesses listed in hong kong, including chinese technology teams alibaba,tencentandxiaomi.
It can be initial etf to be established by ocbc securities and simply the second etf from domestic investment houselion globalinvestors, after itlinkedup with phillip capital on a genuine estate financial investment trust etf in 2017. lion international and ocbc securities tend to be both subsidiaries of singapore-basedocbc bank.
The etf kicked off its preliminary providing period on monday, that will continue until december 7 before formally detailing on thesingapore exchangeon december 10.
The technology sector has actually somewhat outperformed the broader equity market during this period, and technology shares have actually benefited from alterations in consumer behaviour in addition to digital transformation of organizations, stated kao shih teng, senior manager and mind of product solutions at lion international.
Gerard lee, lion globals leader, stated geopolitical trends, such as the tensions between china additionally the us, should cause even more chinese technology organizations being listed in asia instead of the united states, which would more offer the etfs strategy.
Other than investing in the merits of organizations on forefront of disruption and development, this etf provides people a straightforward opportunity to convey their particular look at fundamental changes occurring in geopolitics, mr lee said in a declaration. were certain that this etf could have large trading amount and liquidity.
Lion worldwide estimates that people should be able to invest in the fund for less than s$20 (us$14.94), excluding commissions and fees, that ought to make the method attractive to more youthful and on occasion even first-time people.
Data from securities brokerage reveal developing interest from singaporean people for trading when you look at the hong-kong stock exchange, with trading volumes up 34 % within the one year to october in 2010.
Hong kong-listed chinese technology companies, particularly, have consistently already been among the top traded securities, even though the trading amount in etfs among retail customers has actually tripled from january to october this year compared with every one of 2019.
Combined possessions under management for hong-kong etfs tracking the hang seng tech index endured at hk$9.33bn (us$1.2bn) on november 19, based on information from thehong kong exchanges and clearingwebsite. the list launched in july.
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