ChinaAMC (HK) acquires BMO Hong Kong ETF suite
China Asset Management (Hong Kong) Limited completed Friday, May 28, the repurchase of seven Hong Kong-listed exchange-traded funds (ETFs) from BMO Global Asset Management Canada. ETFs have total assets of 4.35 billion Hong Kong dollars (560.5 million US dollars).
The seven ETFs have been included in the list of approved index-linked collective investment schemes (ITCIS). With the takeover, ChinaAMC (HK) is now the second-largest ETF provider in terms of the number of ETFs included in ITCIS, offering a more complete range of products for Trustees of the Mandatory Provident Fund, the company said.
And with the repurchase of the BMO Nasdaq 100 ETF, ChinaAMC (HK) is now the largest and most comprehensive supplier of ETP Nasdaq-100 in Hong Kong, offering a full range of products, including the leveraged product. Nasdaq-100 2x, Nasdaq-100 – 2x reverse product, Nasdaq-100 -1x reverse product and Nasdaq 100 ETF. The wide range of products will allow investors to fully seize investment opportunities in a volatile US stock market environment, according to the fund manager.
Mackenzie Investments, a renowned Canadian asset manager and also a major shareholder of China Asset Management Company Limited, will act as investment advisor.
Tian Gan, CEO of ChinaAMC (HK), said, “As a seasoned ETF provider, we have confidence and commitment to the development of our ETF activities in Hong Kong. The takeover will create synergies and help us further diversify our product portfolio and allow Mackenzie Investments to leverage its broad capabilities. At the same time, this move deepens our cooperation with the Nasdaq, as ChinaAMC (HK) will manage six ETPs (Exchange Traded Products) that track the indices provided by the Nasdaq, making us the ETF issuer that uses the most number of clues provided by the Nasdaq. With our deep understanding of investor appetite in Hong Kong and the Asian market, ChinaAMC (HK) will leverage our competitive advantage and deliver more innovative products to investors. “
After the redemption, the seven ETFs will now be referred to as ChinaAMC Asia USD Investment Grade Bond ETF, ChinaAMC NASDAQ 100 ETF, ChinaAMC MSCI Asia Pacific Real Estate ETF, ChinaAM Hong Banks ETF, ChinaAMC Asia High Dividend ETF, ChinaAMC MSCI Japan Hedged to USD ETF and ChinaAMC MSCI Europe Quality Hedged to USD ETF.