Listed on the Hong Kong Stock Exchange on March 24, the ETF has dual-counter arrangements in the Hong Kong dollar and renminbi.
Value China A-Share ETF will track a customised index FTSE Value-Stocks China A-Share Index, which adopts a screening model to identify undervalued stocks with good fundamental quality. The FTSE Value-Stocks China A-Share Index is calculated and maintained by the FTSE group.
The new ETF’s constituent stocks will be subject to valuation, quality and contrarian screenings, with an aim to generate potentially higher returns than the market.
Commenting on the launch, Cheah Cheng Hye, chairman and co-CIO of Value Partners, said: ‘As China continues to open up its capital markets, we see increasing opportunities for A shares to be included in international indices, which will boost the inflow of capital in the long run.
‘We foresee that this will lead in coming years to a significant expansion in the price-earnings multiples of Chinese stocks.'
Value China A-Share ETF is the seventh exchange-traded fund that Value Partners has established in Hong Kong, completing the suite of Value ETF equities, which includes the Value China ETF, Value Japan ETF, Value Korea ETF and Value Taiwan ETF.
Value Partners had $14 billion of assets under management at the end of February.