HONG KONG – (ACN Newswire) – Ping An of China Asset Management (Hong Kong) Co., Ltd. (“Ping An Asset Management (HK)”), one of the leading asset managers in the region, is pleased to launch two exchanged-traded funds (ETF) – Ping An MSCI China Quality Factor ETF (Stock Code: 3166) and Ping An MSCI China Multi-Factor ETF (Stock Code: 3163) listed on the Hong Kong Stock Exchange today.
Leveraging on Systematic, Quantitative and Scientific investment methodologies, Ping An ETFs are meant to offer investors a vehicle with inherent transparency, consistency, low fees and passive management. Ping An MSCI China Quality Factor ETF and Ping An MSCI China Multi-Factor ETF are investment tools to gain Smart Beta exposure to China equities.
Ping An MSCI China Quality Factor ETF tracks the MSCI China Quality Index, which comprises large and mid-cap stocks of China equities, including H-shares, Red chips and P chips listed on the SEHK, A-shares and B-shares listed on the SSE and SZSE and foreign listed Chinese companies .
Ping An MSCI China Multi-Factor ETF tracks the MSCI China Diversified Multiple-Factor Index, which comprises of large and mid-cap stocks of Chinese enterprises with desired characteristics – value, momentum, quality and low size. The index has historically demonstrated long-term risk-adjusted outperformance.
“There are multiple factors driving risk and return of a portfolio,” said Chi Kit Chai, Head of Capital Markets and CIO at Ping An. “Factor based investing can provide investors with relatively transparent and cost-efficient way to construct a return and risk optimized portfolio in a systematic fashion, allowing investors to achieve diversification benefits and better risk-adjusted returns than traditional market cap-weighted indexes.”
The new ETF brings the number of Ping An ETFs to four, which helps investors to perform asset allocation in a more efficient manner. “The increasing adoption of ETFs by asset managers in recent years has resulted in an over 50% contribution in terms of global funds allocation and is increasingly gaining traction in Asia. Fundamentally, smart beta seeks to improve returns, reduce risk and increase diversification while delivering greater exposure to the market.” said Mona Chung, Head of ETF and Cross Asset Investment at Ping An.
“Following the inclusion of China A-shares into the MSCI Emerging Markets Index, investors’ interest in China has significantly increased. We are happy to be working with Ping An to respond to the growing demand for ETFs accessing this market- their efforts align with trends we are seeing more broadly from investors who want to invest in China.” said Theodore Niggli, Managing Director and APAC Head of MSCI Index Business.
Table 1: Key fund facts
ETF Name Ping An MSCI China Quality Factor ETF Ping An MSCI China Multi-Factor ETF
Stock Code 3166 (HKD) 3163 (HKD)
Underlying Index MSCI China Quality Index MSCI China Diversified Multiple-Factor Index
Management Fee 0.55% (per annum) 0.55% (per annum)
Exchange The Stock Exchange of Hong Kong The Stock Exchange of Hong Kong
About Ping An
Ping An of China Asset Management (Hong Kong) Co., Ltd. (“Ping An Asset Management (HK)”) was established in May 2006, and is a wholly-owned subsidiary of the Ping An Group (2318.HK). Ping An Asset Management (HK) is licensed under the Securities and Futures Commission (SFC) in Hong Kong to carry on Type 1 (dealing in securities), Type 4 (advising on securities) and Type 9 (asset management) regulated activities.
Ping An Asset Management (HK) accepts investment mandates from a diverse group of private and institutional clients, including other subsidiaries of the Ping An Group as well as external clients. Ping An Asset Management (HK) manages exchange-traded funds (ETFs) listed on the Hong Kong Stock Exchange and unit trust for the retail market. Ping An Asset Management (HK) also provides Qualified Domestic Institutional Investors (QDII) and Qualified Foreign Institutional Investors (QFII)/ Renminbi Qualified Foreign Institutional Investors (RQFII) advisory services to institutions.