Wednesday, November 11, 2015

Hong Kong-Shenzhen stock connect, You must know which ETFs will be benefited before they are linked ?

The share prices of mainland brokering houses surged recently due to the (HongKong-ShenZhen) HKSZ linkage news.
哪一只ETF可能将受益于香港 - 深圳连接?

In ETF perspective, we list down the following 3 ETFs which could potentially benefit from the connect - for your consideration.
我们列出了下列3ETF供大家参考, 3ETF有可能受益于香港 - 深圳连接。

Exchange: Hong Kong
Code/Symbol: 3147 
Underlying index: ShenZhen ChiNext Index
Current price: HKD12.58
ChiNext market provides an important platform for implementing the national strategy of independent innovation. It helps accelerate the transformation of economic development mode and galvanizes growth in emerging industries of strategic importance. 

In August 1999, the CPC Central Committee and the State Council proposed the establishment of a hi-tech board. In August 2000, with the approval of the State Council, the CSRC decided that SZSE took on the task of preparing for second board. After ten years of exploration, China’s second board market---ChiNext was inaugurated in Shenzhen on 23 October, 2009. As of 30 December, 2011, there were 281 companies listed on the ChiNext, of which 93% are hi-tech firms. The total market capitalization of ChiNext listed companies reached RMB 743.4 billion (USD 118 billion). IPO proceeds hit RMB 196.1 billion (USD 31.1 billion). Total trading value of ChiNext was RMB 1.9 trillion (USD 301.6 billion) in 2011.

In the past two years, ChiNext market has seen smooth operation and exhibited distinctive sectoral features. A group of innovative enterprises successfully raised funds through the capital market. Their exemplary and spillover effects have led to creation of a national SME support system. ChiNext Market promoted allocation of social funds to innovative businesses and emerging industries.

ETF Name: Market Vectors ChinaAMC SME-ChiNext ETF
Exchange: US
Code/Symbol: CNXT 
Underlying index: SME-ChiNext 100 Index
Current price: USD43.33
Tracks the performance of the 100 largest and most liquid China A-share stocks listed and trading on the Small and Medium Enterprise ("SME") Board and the ChiNext Board of the Shenzhen Stock Exchange.

ETF Name: ChinaAMC Hang Seng SmallCap Index ETF (New ETF)
Exchange: Hong Kong
Code/Symbol: 3157 
Underlying index: Hang Seng Composite SmallCap Index
Current price: HKD24.05
The Index covers small cap stocks with market capitalisation rank below 95th percentile of the market capitalisation of the Hang Seng Composite Index, which strives to cover the top 95th percentile of the total market capitalisation of the Hong Kong Stock Exchange.

(Southbound beneficiary: Hang Seng Composite SmallCap Index may potentially be included in the anticipated Shenzhen-Hong Kong Stock Connect Scheme which may potentially attract inflows from mainland Chinese investors)

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