HSBC gains new securities services mandate in Hong Kong
22 October 2020 Hong Kong
Image: Heorshe/Adobe Stock
HSBC has been appointed trustee, custodian and fund administrator for the first two exchange-traded funds (ETFs) in Hong Kong under the cross-listing scheme between Hong Kong and mainland China.
Financial regulators in both markets have authorised Hang Seng Investment Management and CSOP Asset Management to launch Hang Seng Harvest CSI 300 Index ETF and CSOP Yinhua CSI 5G Communications Theme ETF, respectively on 23 October.
Under the new programme, global investors can participate in the mainland ETF market through the Renminbi Qualified Foreign Institutional Investor status.
Additionally, mainland China investors can trade ETFs listed in Hong Kong through the Qualified Domestic Institutional Investor status.
Structured as a feeder fund, the new ETFs will invest 90 percent or more of its total net asset value in a target ETF listed in the other market, HSBC explained.
Patrick Wong, head of China business development and client management, securities service at HSBC, commented: “We are delighted to partner with Hang Seng and CSOP in this pioneering ETF. This strengthens our commitment to continuously work closely with market players in providing access to global investors to this region.”
“These two ETFs will help boost the ETF market in Hong Kong, and align with the broader developments seen in the financial markets in the Greater Bay Area. This development also marks the initial step for further new connect initiatives,” he added.
HSBC has also recently been selected to provide securities services for Hong Kong’s first broad-based ESG ETF Haitong International Asset Management.
Financial regulators in both markets have authorised Hang Seng Investment Management and CSOP Asset Management to launch Hang Seng Harvest CSI 300 Index ETF and CSOP Yinhua CSI 5G Communications Theme ETF, respectively on 23 October.
Under the new programme, global investors can participate in the mainland ETF market through the Renminbi Qualified Foreign Institutional Investor status.
Additionally, mainland China investors can trade ETFs listed in Hong Kong through the Qualified Domestic Institutional Investor status.
Structured as a feeder fund, the new ETFs will invest 90 percent or more of its total net asset value in a target ETF listed in the other market, HSBC explained.
Patrick Wong, head of China business development and client management, securities service at HSBC, commented: “We are delighted to partner with Hang Seng and CSOP in this pioneering ETF. This strengthens our commitment to continuously work closely with market players in providing access to global investors to this region.”
“These two ETFs will help boost the ETF market in Hong Kong, and align with the broader developments seen in the financial markets in the Greater Bay Area. This development also marks the initial step for further new connect initiatives,” he added.
HSBC has also recently been selected to provide securities services for Hong Kong’s first broad-based ESG ETF Haitong International Asset Management.
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