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China Asset Management (Hong Kong) said on Tuesday that the ChinaAMC Franklin HK-US Equity Cash Flow Focus ETF (3520) and the ChinaAMC Franklin FTSE Innovative Drugs ETF (3525) were successfully listed on the Stock Exchange of Hong Kong, in collaboration with Franklin Templeton.
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Designed with a focus on resilience and quality, ChinaAMC Franklin HK-US Equity Cash Flow Focus ETF seeks to track the Solactive G2 Cash Flow Index NTR, comprising 20 Hong Kong-listed, Stock Connect-eligible securities and 80 US-listed securities.
The index targets a market allocation of 60 percent to Hong Kong and 40 percent to the U.S. Eligible companies must have recorded positive operating cash flow in each of the past three financial years and are screened for positive forecast free cash flow, while financial companies are excluded.
Meanwhile, ChinaAMC Franklin FTSE Innovative Drugs ETF adopts a more growth-oriented approach, tracking the FTSE ETF Connect Innovative Drugs Index that covers 30 Hong Kong-listed, Stock Connect-eligible securities and 70 developed-market securities, with target market allocations of 65 percent and 35 percent, respectively.
The index focuses on R&D-led pharmaceutical and biotechnology companies, excludes traditional Chinese medicine businesses and outsourced drug-service providers, and adjusts constituent weights based on research&development intensity.
By connecting Chinese innovators with global drugmakers, the products reflect the cross-border nature of drug development while offering investors targeted exposure to companies at the forefront of global healthcare innovation and long-term capital appreciation, said Tian Gan, chief executive of ChinaAMC (HK).
