HKEX Launches First MSCI China A 50 Connect Index ETFs

Hong Kong Exchanges and Clearing Limited (HKEX) today announced the launch of the first Exchange Traded Funds (ETFs) to track the MSCI China A 50 Connect Index. According to the press release, a total of three new ETFs that track the index are listing on HKEX, available in HKD, USD and RMB counters.

The MSCI China A 50 Connect Index is designed to have a comprehensive representation of the Chinese economy by including 50 of the largest stocks in the China A-share large-cap universe, and targeting at least two stocks from each sector. The index comprises 50 Stock Connect eligible underlying stocks and historically has a high correlation to the performance of main MSCI A-share indices.

In October, HKEX successfully launched its first A-shares index futures–MSCI China A 50 Connect Index Futures​, providing an efficient risk management tool for investors to manage their Stock Connect A-shares equity exposure in Hong Kong.

 “We warmly welcome the listing of these new ETFs tracking the MSCI China A 50 Connect Index. They will join the increasingly diversified Connect product ecosystem in Hong Kong, enriching the choice for investors around the world, and providing another investment option for those seeking exposure to China assets,”HKEX Co-Head of Markets Wilfred Yiu said.

“HKEX looks forward to working with its clients and the market on continuing to build Hong Kong’s attractiveness as an offshore RMB hub and international trading, risk management and capital raising centre,”Yiu added.