AmInvest launches new fund to capture growth of Chinese technology giants

Photo: The Edge Markets

KUALA LUMPUR: AmInvestment Bank Bhd (AmInvest) has launched its new Hong Kong Tech Index Fund (HKTIF) that will enable investors to catch the growth brought on by the fast-growing technology sector and the increasing number of technology companies that are listed in Hong Kong.

The fund will feed into the world’s first and largest exchange-traded fund (ETF), which tracks the performance of the Hang Seng Tech Index (HSTech), namely CSOP Hang Seng Tech Index ETF.

HSTech Index represents the 30 largest Greater China technology companies listed in Hong Kong.

It consists of companies with high business exposure to selected technology themes, including the internet, fintech, cloud, e-commerce and digital activities.

As of 30 June 2021, the top 10 constituents comprise Meituan, Alibaba, Sunny Optical, Tencent and Xiaomi.

Since its inception in July 2020, the HSTech Index has delivered returns of around 20 per cent.

AmInvestment Bank Bhd chief executive officer Tracy Chen Wee Keng said the technology sector’s growth has been on an uptrend accelerated by the pandemic, which has required companies to rely on technology and speeds up their digital transformation strategies.

“Touted as the Nasdaq of the East, the HSTech Index, which the CSOP Hang Seng Tech Index tracks, is expected to drive capital flows with Chinese technology companies, including Chinese unicorns and start-ups choosing to list closer to home.

“Furthermore, trade tensions between the United States (US) and China have also increased the number of US-listed Chinese giants listing in Hong Kong,” she said in a statement today.

AmInvest is the fund management business of AmFunds Management Bhd and AmIslamic Funds Management Sdn Bhd, both wholly-owned subsidiaries of AmInvestment Bank.

Touching further on the fund, AmInvest chief executive Goh Wee Peng said HKTIF offers investors an easy, transparent and efficient investment tool to replicate the performance of the fast-growing Chinese technology sector, all through a single transaction.

“AmInvest is excited to partner with CSOP Asset Management Ltd (CSOP), the CSOP Hang Seng Tech Index ETF fund manager and a leading ETF manager and Exchange Traded Product (ETP) issuer in Hong Kong.

“With close to half of Hong Kong’s top traded ETPs during this year having been issued by CSOP, the company has established its brand as a reliable ETF issuer for the past nine years,” she said.

HSTech Index is designed for eligible stocks to be filtered by criteria of whether they operate via a technology-enabled platform, their research and development expenses to revenue ratio, and their revenue growth.

The qualified largest 30 stocks in terms of market capitalisation are selected as index constituents and are reviewed quarterly.

In consideration of upcoming sizable technology companies, a rule is also applied to ensure a timely inclusion of these qualified potential constituents for possible investment appreciation opportunities.

The fund’s base currency is Hong Kong Dollar (HKD) and is being offered for subscription to sophisticated investors in HKD and ringgit and in RM-hedged classes at an initial offer price of HKD1 and RM1 per unit, respectively, during the initial offer period until 16 August 2021.

Source: New Straits Times


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