Asia ETF Roundup (Industry) – April 2022

More Chinese ADRs identified under the Holding Foreign Companies Accountable Act (“HFCAA”) 

Jackie Choy, CFA 05 May, 2022 | 9:59
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For economic and market news relating to Asian ETFs, please refer to our “Asia ETF Roundup (Market) – April 2022”. 

ETF Industry News

More Chinese ADRs Identified Under Holding Foreign Companies Accountable Act (“HFCAA”)

In April, the U.S. Securities and Exchange Commission identified more companies under the Holding Foreign Companies Accountable Act (“HFCAA”). As of end of April 2022, there were 40 companies included in the provisional list and conclusive list of issuers identified under the HFCAA. Companies added to the list during month included Sohu.com (SOHU) and Futu Holdings (FUTU). According to the HFCAA and the companies’ announcements, a company’s ADR could be delisted from a U.S. stock exchange if the company is identified on the list for three consecutive years.

Chinese Equity ETF Watch – Inflows into Offshore and Onshore Chinese Equity ETFs in Hong Kong

  • Hong Kong-domiciled ETFs in the China Equity Category saw net inflows estimated at USD 0.1 billion in April, mainly coming from the Hang Seng China Enterprises Index ETF (02828/82828).
  • Hong Kong-domiciled ETFs in the China Equity - A-Shares Category saw estimated net inflows of USD 0.1 billion in April, coming mainly from the ChinaAMC CSI 300 Index ETF (83188/03188), the CSOP FTSE China A50 ETF (82822/02822) and the iShares FTSE China A50 ETF (82823/02823).
  • Hong Kong-domiciled ETFs in the China Equity Category and the China Equity – A-Shares Category saw estimated year-to-date net inflows of USD 0.7 billion and net outflows of USD 0.3 billion, respectively.
  • In the U.S, we estimated net inflows of USD 0.3 billion from the iShares China Large-Cap ETF (FXI) and the iShares MSCI China ETF (MCHI). Meanwhile, we estimate net outflows of USD 0.4 billion from the Xtrackers Harvest CSI 300 China A ETF (ASHR) and USD 0.2 billion from the KraneShares CSI China Internet ETF (KWEB).

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New Launches and Listings

China: 6 ETF New Listings

  • Chinese ETF providers listed 6 new ETFs on the Shanghai Stock Exchange and Shenzhen Stock Exchange in April. These launches included a gold ETF, 4 thematic/sector ETFs and a high dividend yield ETF.
  • These listings put the total number of ETFs listed in China at 683 (252 ETFs on the SZSE, 431 ETFs on the SSE).

India: 1 New ETF Listing

  • ETF providers in India listed a thematic ETF tracking the digital theme on local exchanges in April.

Singapore: 1 ETF Net Listing

  • Lion Global listed an ETF on the Singapore Exchange. The ETF tracks a low carbon index.
  • This listing put the total number of ETFs listed in Singapore at 35 (54 listings).

South Korea: 6 ETF New Listings

  • Korean ETF providers listed 3 actively managed ETFs, a thematic ETF, an ESG ETF and a leveraged ETF on the Korea Exchange.
  • These listings put the total number of ETFs listed in South Korea at 555.

Taiwan: 1 New ETF Listing

  • Franklin Templeton SinoAm launched a strategic-beta ETF in April on the Taiwan Stock Exchange.
  • This listing put the total number of ETFs listed in Taiwan at 225.

ETFs Launched in April 2022 in the Asia ex-Japan Region

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About Author

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

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