Made in China

China

Hangzhou Bay Area ETF

Chinese fund provider Nanhua is listing a unique geographically specific China ETF that only invests in companies from the Hangzhou Bay Area. Hangzhou bay has been a zone of heavy investment for the Chinese Communist Party and has benefitted from the installation of one of the world’s largest bridges accessible by car. The 35km behemoth that was finished in 2008.

 

The Nanhua CSI Hangzhou Bay Area ETF (512870) tracks an index from CSI, China’s largest index provider. The index starts with Shanghai and Shenzhen A shares that meet certain liquidity and profitability criteria. Financials are excluded, giving the index something of a Nasdaq-like tech tilt.

 

Where things get very interesting however is that only companies that are registered or have their basis of operations in Hangzhou, Ningbo, Jiaxing, Shaoxing, Huzhou, Zhoushan, Jinhua or Shanghai – are eligible for inclusion. The index includes 100 stocks, picked based on growing profitability and liquidity.

 

For those fluent in mandarin (we used Google translate), the index factsheet is here.

 

ICBC and Credit Suisse list SSE 50 ETF

Under their joint venture asset manager, ICBC and Credit Suisse are listing an ETF that tracks the shanghai blue chip index, the SSE 50. The ICBC Credit Suisse SSE 50 ETF (510850) will invest in 50 of the largest and most liquid blue chip companies listed on the Shanghai Stock Exchange.

 

The index has a heavy financial tilt, with the financial services industry making up more than 60% of the indexes weight. While more than 10 banks are included, the real obese constituent is Ping An, which takes up 15% of the index.

 

Index factsheet here.

 

Fubon lists China small and mid cap ETF

Taipei-headquartered Fubon, one of Taiwan’s biggest financial service providers, is listing a new ETF that tracks the China small and mid cap space. The Founder Fubon CSI 500 ETF (510550) will track the CSI 500. The index consists of the largest remaining 500 A shares after excluding both the CSI 300 Index constituents and the largest 300 stocks. It is designed to reflect the overall performance of small-mid cap A shares.

 

The index is fairly evenly sector weighted. However, given the trade war the index has provided a return this year of -25%.

 

Index factsheet here.