HK-traded ETF bets on new drivers of China's growth

Business | 12 Sep 2018 4:30 pm

BOCI-Prudential Asset Management’s new exchange-traded fund W.I.S.E-Nasdaq Overseas China New Economy Companies Top 50 Index Tracker (3182) began trading on the Stock Exchange of Hong Kong today, with an initial issue price of HK$1,000 per lot, excluding duties and charges.

The fund seeks to track the performance of the Nasdaq Overseas China New Economy Companies Top 50 Index, made up of the largest 50 companies from China listed in the US and Hong Kong. The companies are classified as consumer goods, health care, consumer services and technology.

Chinese search giant Baidu was the largest constituent of the index, with a weight of 9 percent, Alibaba Group, Tencent (0700) and accounted for 8.6 percent, 7.54 percent and 7.54 percent respectively.

"We don't think the Sino-US trade war would lead to a global recession, instead market sentiment would be most affected,'' said Samuel Mui, vice president of BOCI-Prudential Asset Management. He is confident about the new economy sector, as it is a key driving force of China's economic growth.

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