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Asia ETF Roundup (Industry) – November 2022

Hang Seng Index constituents increases to 76.

Jackie Choy, CFA 09 December, 2022 | 10:48
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For economic and market news relating to Asian ETFs, please refer to our “Asia ETF Roundup (Market) – November 2022”.

ETF Industry News

Hang Seng Index November Review -- Constituents Count Increases to 76 

On 18 November, Hang Seng Indexes announced the results of the review of its benchmark series for the quarter ended 30 September. The total number of constituents in the Hang Seng Index will increase to 76 from 73, effective on 5 December. The full index review results, along with the latest pro forma weightings of the constituents in the Indexes can be viewed here.  

Constituent changes at the November Index Review: 

Hang Seng Index

  • Additions: Tingyi (Cayman Islands) Holdings (00322), China Resources Mixc Lifestyle Services Limited (01209), Haier Smart Home – H Shares (06690)

Hang Seng China Enterprises Index 

  • Additions: PetroChina – H shares (00857), Zhongsheng Group Holdings (00881), Li Auto – W (02015), Haier Smart Home – H Shares (06690)
  • Removals: Alibaba Health Information Technology (00241), China Gas Holdings (00384), Innovent Biologics (01801), Bilibili – W (09626)

Hang Seng TECH Index 

  • No changes in constituents.

Another 2 Companies Identified Under Holding Foreign Companies Accountable Act (“HFCAA”)

In November, the U.S. Securities and Exchange Commission identified a further 2 companies under the Holding Foreign Companies Accountable Act (“HFCAA”). This puts the total number of companies on the provisional list and conclusive list of issuers identified under the HFCAA at 173 as of the end of November 2022. Companies added to the list included Bit Brother Limited (BTB) and Missfresh Limited (MF). According to the HFCAA and the companies’ announcements, a company’s ADR could be delisted from a U.S. stock exchange if the company remains in the list for three consecutive years.

Chinese Equity ETF Watch – Net Outflows of USD 0.4 Billion from Offshore Chinese Equity ETFs in Hong Kong; U.S. Major Chinese Equity ETFs Saw Net Inflows

  • Hong Kong-domiciled ETFs in the China Equity Category saw net outflows estimated at USD 0.4 billion in November, mainly driven by an estimated net outflow of USD 0.4 billion from the Hang Seng China Enterprises Index ETF (02828/82828).
  • Hong Kong-domiciled ETFs in the China Equity - A-Shares Category saw small net inflows, estimated at USD 3 million in November.
  • In the first eleven months of 2022, Hong Kong-domiciled ETFs in the China Equity Category and the China Equity – A-Shares Category recorded estimated net inflows of USD1.2 billion and USD 44 million, respectively.
  • In the U.S., the iShares China Large-Cap ETF (FXI) and the iShares MSCI China ETF (MCHI) recorded inflows, estimated at a combined USD 462 million. The Xtrackers Harvest CSI 300 China A ETF (ASHR) saw net inflows of USD 311 million while the KraneShares CSI China Internet ETF (KWEB) saw estimated net inflows of USD 66 million.

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New Launches and Listings

China: 9 ETF New Listings

  • Chinese ETF providers listed 9 new ETFs on the Shanghai Stock Exchange and Shenzhen Stock Exchange in November. These included 4 broad-market ETFs, 3 thematic/sector ETFs, 1 bond ETF and 1 actively managed (enhanced strategy) ETF.
  • 6 ETFs were delisted from the Shanghai Stock Exchange and Shenzhen Stock Exchange in total.
  • This brings the total number of ETFs listed in China to 749 (281 ETFs on the SZSE, 468 ETFs on the SSE).  

Hong Kong: 5 ETF New Listings

  • ETF providers in Hong Kong launched 1 money-market ETF (HKD and RMB counters), 1 ESG fund (HKD, RMB and USD counters), 1 ETF tracking newly listed companies on the Hong Kong Exchange and a pair of leveraged/inverse products.
  • 5 ETFs were delisted during the month. They include an inverse ETF on the S&P 500 index and 2 pairs of leveraged/inverse ETFs on the Hang Seng Index and the Hang Seng China Enterprises Index, all managed by Global X (Mirae Asset).
  • This brings the total number of ETFs listed in Hong Kong to 257 (168 ETFs and 89 multiple counters, including 27 leveraged/inverse products).

South Korea: 25 ETF New Listings

  • Korean ETF providers listed 13 active ETFs, 6 blended index ETFs, 3 thematic ETFs, 2 broad market ETFs and a dividend ETF on the Korea Stock Exchange.
  • This brings the total number of ETFs listed in South Korea to 655.

Taiwan: 1 New ETF Listing

  • Taiwan ETF providers listed strategic-beta ETF tracking the TIP Customized Taiwan High Dividend Recovery 30 Index on Taiwan Stock Exchange.
  • This puts the total number of ETFs listed in Taiwan at 231.

Singapore: 1 New ETF Listing

  • Singapore ETF providers listed an ETF tracking the ChiNext Index on the Singapore Exchange.
  • This puts the total number of ETFs listed in Singapore at 58 (37 ETFs and 21 multiple counters).

India: 2 New ETFs Listing

  • HDFC Asset Management in India listed 2 sector ETFs on the exchanges in India. 

ETFs Launched in November 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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