Asia ETF Roundup (Industry) – August 2021

Hang Seng Index increases to 60 constituents

Jackie Choy, CFA 07 September, 2021 | 11:35
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For economic and market news relating to Asian ETFs, please refer to our “Asia ETF Roundup (Market) August 2021”.

 

ETF Industry News

Hang Seng Index August 2021 Review – Increases to 60 Constituents

On 20 August, Hang Seng Index released the result of the August 2021 review of its benchmark series. The total number of constituents of the Hang Seng Index will be increased to 60 from 58 by adding three companies and removing one company. Along with this index review, Autonomous will be added as the sixth eligible theme for constituent selection of the Hang Seng TECH Index, effective from the November 2021 index review. The full index review result, along with the latest weightings of the constituents in the Hang Seng Index can be viewed here.

 

Constituent changes at the August Index review:

Hang Seng Index

  • Additions: Xinyi Glass (00868), Li Ning (02331) and China Merchants Bank – H shares (03968)
  • Removals: Bank of Communications – H shares (03328)

Hang Seng China Enterprises Index

  • Additions: Li Ning (02331) and JD Logistics (02618)
  • Removals: Shimao Group (00813) and Anhui Conch Cement (00914)

Hang Seng TECH Index

  • Additions: Trip.com Group (09961)
  • Removals: Koolearn Technology (01797)

 

Chinese Equity ETF Watch – Hong Kong-Domiciled Offshore See Estimated Net Inflows of USD 0.4 billion; Onshore Chinese Equity ETFs See Estimated Net Outflows of USD 0.2 billion; Major US-Domiciled ETFs See Estimated Net Inflows of USD 1.5 billion

  • Hong Kong-domiciled ETFs in the China Equity Category saw estimated net inflows totalling USD 357 million in August, coming mainly from the Hang Seng China Enterprises ETF (02828) is estimated at USD 305 million of net inflows.
  • Hong Kong-domiciled ETFs in the China Equity - A-Shares Category saw estimated net outflows of USD 219 million in August, coming mainly from the ChinaAMC CSI 300 ETF (83188/03188) which recorded net outflows estimated at USD 143 million.
  • For the year through to August 2021, the Hong Kong-domiciled ETFs in the China Equity Category saw estimated outflows USD 10 million while Hong Kong-domiciled ETFs in the China Equity – A-Shares Category saw estimated outflow of USD 186 million.
  • In the U.S. in August, we estimated total net inflows of USD 49 million from the iShares China Large-Cap ETF (FXI) and the iShares MSCI China ETF (MCHI). The Xtrackers Harvest CSI 300 China A ETF (ASHR) saw estimated net ouflows of USD 0.2 billion while the KraneShares CSI China Internet ETF (KWEB) saw estimated net inflows of USD 1.6 billion.
  • For the year up to August 2021, the KraneShares CSI China Internet ETF (KWEB) saw total estimated net inflows of USD 5.3 billion.

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New Launches and Listings

China: 28 ETF New Listings; 1 Delisting

  • Chinese ETF providers listed 17 new ETFs on the Shanghai Stock Exchange and 11 new ETFs on the Shenzhen Stock Exchange. These include 24 thematic/sector ETFs, 3 ETFs tracking broad market indices and 1 ETF tracking an ESG index.
  • CIB SSE 1-5 Year Local Government Bond ETF Fund (511050) was delisted from the Shanghai Stock Exchange on 31 August.
  • Including the above listings and delisting, the total number of ETFs in China stands at 556 (189 ETFs on the SZSE, 367 ETFs on the SSE).

 

India: 2 ETF New Listings

  • Indian ETF providers listed 2 new sector ETFs on the Indian exchanges.


Hong Kong: 1 ETF New Listing; 11 Delistings; 3 RMB Counter Terminating

  • Hong Kong ETF providers listed 1 new thematic ETF and USD counter of an existing ETF on the Hong Kong Exchange.
  • 11 ETFs from Xtrackers had their last trading day on 18 August; iShares terminated 3 RMB counter of existing ETFs, the last trading of those RMB counters were 24 August.
  • Including the above listings and delistings, the total number of ETFs in Hong Kong stands at 220 (143 ETFs and 77 multiple counters, including 26 leveraged/inverse products).

 

South Korea: 7 ETF New Listings

  • Korean ETF providers listed 7 ETFs on the Korea Exchange. These include 5 thematic ETFs, 1 ETF and 1 inverse ETF tracking the F-KTB5 Duration Following Index.
  • Including the above listings, the total number of ETFs in Korea stands at 502.

 

Singapore: 1 ETF New Listings

  • Lion Global Investors listed an ETF (along with a RMB counter) tracking Hang Seng Stock Connect China 80 Index on the Singapore Exchange.
  • These listings put the total number of ETFs listed in Singapore at 46 (31 ETFs and 15 multiple counters)

 

Taiwan: 2 New ETF Listing; 2 Delisting

  • Taiwan ETF providers listed 1 thematic ETF and 1 strategic-beta ETF on the Taiwan Stock Exchange.
  • KGI 15+ Year US Healthcare and Pharma Bond ETF and Franklin Templeton Sino Am 10-25 Years US Corporate Bond ETF had their last trading day on 2 August and 16 August respectively.
  • Including the above listings and delisting, the total number of ETFs in Taiwan stands at 219, of which 96 are bond ETFs.

 

ETFs Launched in August 2021 in the Asia ex-Japan Region

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

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