HSBC launches Greater China Exchange Traded Fund

The product provides enhanced access to the potential upside of Greater China as the lender aims to expands Asia-Pacific ETF market.

HSBC on Thursday announced the launch of its HSBC Greater China Exchange Traded Fund (ETF) series in Hong Kong. The series, which is HSBC’s first equity ETF in Hong Kong, comprises of four funds and will provide Hong Kong investors enhanced access to the potential upside of Greater China markets. The launch represents HSBC’s expansion into the ETF market in Asia-Pacific, which complements its well-established presence in the European ETF market.

With the launch of the HSBC Greater China ETF series, HSBC will strategically extend its existing asset management leadership to the Asia-Pacific ETF market and build on its global ETF platform. Since the launch of its first European ETF in 2009, HSBC has grown the product portfolio to 23 funds tracking developed and emerging market equity indices, according to an HSBC report.

Gordon French, Head of Global Markets, Asia-Pacific, HSBC, said: “Hong Kong retail investors are growing in sophistication and are increasingly looking to tap the potential upside of Greater China markets. The launch of the HSBC Greater China ETF series is timely and will cater to demand for enhanced emerging market investment products that are backed by an unwavering emphasis on quality, transparency and value. The launch of this innovative new series complements HSBC’s existing global ETF leadership and further strengthens our unmatched experience in providing Hong Kong investors with enhanced investment options.”

The HSBC Greater China ETF series will be listed on The Stock Exchange of Hong Kong on 18 April 2011 (Monday). The four ETFs in the series will track various MSCI equity indices:

• HSBC MSCI Golden Dragon ETF (SEHK: 3088) - The first ETF globally with the MSCI Golden Dragon Index as the underlying index
• HSBC MSCI China ETF (SEHK: 3033)
• HSBC MSCI Hong Kong ETF (SEHK: 3000) - The first ETF in Asia with the MSCI Hong Kong Index as the underlying index
• HSBC MSCI Taiwan ETF (SEHK: 3083)

The estimated Total Expense Ratio (TER) of the HSBC Greater China ETF series is 0.5 per cent.

While retail investors have a strong appetite for ETFs, there is also a growing demand from institutional investors using ETFs for tactical as well as strategic asset allocation. By tracking various MSCI equity indices, which are perfectly designed for benchmarking and highly recognised by institutional investors, the HSBC Greater China ETF series would also accommodate the needs of institutional clients and asset managers.

HSBC is differentiating itself by building a range of simple and transparent ETF products with a strong emphasis on manufacturing quality, prudent risk management and the emerging markets theme. All aspects of ETF manufacturing are in-house, helping us to better control risks and giving investors strong confidence. Over half of the HSBC ETFs provide access to the faster growing markets from Brazil and China to South Africa and Turkey.