Hong Kong ETF

Hong Kong experienced a big development in the ETF market in 2010. It started off by 18 ETFs being listed in the SEHK, 12 of them tracking Mainland A-Share Index and 6 of them tracking overseas indices. Now there are 61 ETFs listed and this number is still increasing.

The market environment in Hong Kong is now offering a good choice of investment options for people looking for ETF products.  By allowing overseas ETFs to be authorized for sale in Hong Kong, the ETF market has also scope for expansion. If the regulatory commission of Hong Kong can focus on the factors of building unique ETF products and a built in arbitrage mechanism to keep the trading prices close to NAV, the efficient trading of ETFs can very well be put forward. The opportunities that Hong Kong is currently providing can be leveraged on to make it a favorite in the Asian ETF market.

Even though vast majority of investors still keep their money in mutual funds, more investors are looking for a way to enter the Hong Kong ETF market as well, due to their low cost.

Currently the iShares MSCI Hong Kong Fund (NYSE: EWH) is a well performing ETF for the Stock Exchange of Hong Kong. Hong Kong is also hosting the ETF & Indexing Investment Summit Asia this year. This calls for more investment opportunities in the Hong Kong equity market.

Not only the EWH ETF, but foreign ETFs are also listed in the SEHK. Recently Mirae Asset Global Investments announced the Mirae Asset TIGER KOSPI 200 ETF (TIGER KOSPI 200) which is tracking the South Korean KOPI 200 Index. HSBC has also taken a step in launching an ETF in the Hong Kong market recently, the HSBC MSCI Hong Kong ETF. These are steps that are actually opening doors for the progressive Hong Kong market.

The increased number of Hong Kong ETFs can also be a good indicator for investors that the Hong Kong economy is stabilizing from recent setbacks in the region.  One of the indicators for that is that Hong Kong’s retail sales just increased to an 18.3% value since 2010. The said improvement in sales was believed to be contributed by the excellent tourism management and the good local consumer relationship between businesses. Along with the progressive economic sectors in this region the securities market of Hong Kong has gained an international level and is currently the second largest in Asia after Tokyo.

In recent studies, projections show that Hong Kong’s economy will experience an average  growth of 5% in the coming years. This can be a good indicator for Hong Kong ETF investors to make their moves by launching more sector based ETFs.

Hong Kong ETF list

  • Tracker Fund of Hong Kong (TraHK) – which follows the Hang Seng Index
  • iShares MSCI China Index ETF – which follows the MSCI China Index
  • iShares MSCI Emerging Asia Index ETF – which follows the MSCI EM Asia Index
  • Lyxor ETF FTSE RAFI US-1000 – which follows the FTSE RAFI US-1000 Index
  • Lyxor ETF FTSE RAFI Europe – which follows the FTSE RAFI Europe Index
  • Lyxor ETF Commodities – which follows the Reuters/Jefferies CRB Index
  • Lyxor ETF MSCI India – which follows the MSCI India Index
  • Lyxor ETF MSCI World – which follows the MSCI World Index
  • Lyxor ETF MSCI Korea – which follows the MSCI Korea Index
  • Lyxor ETF Japan (TOPIX) – which follows the Japan TOPIX Index
  • Lyxor ETF MSCI AP Ex JP – which follows the MSCI AC Asia-Pacific Ex Japan Index
  • db x-trackers CSI300 Real Estate Index ETF – which follows the CSI300 Real Estate Index
  • PAragon CSI RAFI 50 ETF – which follows the CSI RAFI 50 Index
  • ABF HK IDX ETF – which follows the iBoxx ABF Hong Kong Index
  • Lyxor ETF MSCI Emerging Market ETF – which follows the MSCI Emerging Market Index
  • ABF Pan Asia Bond Index Fund – which follows the iBoxx ABF Pan-Asia Index
  • iShares FTSE A50 China Index ETF – which follows the FTSE/Xinhua China A50 Index
  • Lyxor ETF MSCI NASDAQ 100 – which follows the MSCI NASDAQ 100 Index
  • HS H-Share ETF – which follows the Hang Seng China Enterprises Index
  • Lyxor ETF Russia – which follows the DJ RUSINDEX TITANS 10
  • HS HSI ETF – which follows the Hang Seng Index
  • SENSEXINDIA ETF – which follows the BSE Sensitivity Index
  • Lyxor ETF MSCI Taiwan – which follows the MSCI Taiwan Index
  • Hang Seng FTSE/Xinhua China 25 Index ETF – which follows the FTSE/Xinhua China 25 Index
  • SPDR GOLD TRUST – which follows the Gold Price
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