Hang Seng Bank is first Hong Kong bank with RQFII ETF

Fund will be listed on Hong Kong Stock Exchange November 26.

Hang Seng will launch the “Hang Seng China A Industry Top Index ETF (Fund),” a Renminbi Qualified Foreign Institutional Investor or RQFII exchange-traded fund (ETF), following authorization by the Securities and Futures Commission.

The fund is expected to be listed on the HKEx (RMB Counter stock code: 83128 / HKD Counter stock code: 03128). It will be available for subscription at Hang Seng Bank branches from November 12 to 19.

Fund units are in renminbi and investors can trade in either the renminbi counter or HKD counter at the HKEx after the fund is listed.

Hang Seng said the fund encompasses the merits of both renminbi and ETF investment and offers investors the opportunity to gain exposure to the Mainland A-share market. It noted that the launch of the fund will reinforce its position in the offshore renminbi market and expand the range of renminbi investment products available in Hong Kong,

Hang Seng said the investment objective of the fund is to provide investment results that (before fees and expenses) closely correspond to the performance of the Hang Seng China A Industry Top Index (Index. This index, provided by Hang Seng Indexes Company, uses both market capitalization and objective fundamental factors as criteria for constituent selection.

The Index reflects the performance of mainland industry leaders in each of the 11 industries under the Hang Seng Industry Classification System.