An exchange traded fund tracking mainland Chinese equities became the most traded security on the Hong Kong exchange in January, the latest sign of international appetite for exposure to China and the growing interest in Asia for passive investments.
The iShares A50 ETF, which aims to mirror the performance of China’s top 50 listed companies, last month recorded a higher turnover value than any listed stock in Hong Kong, including index heavyweights such as China Mobile, HSBC and ICBC.
Since the start of December, the CSI300 index – a mixture of Shanghai and Shenzhen listed stocks, also known as A shares – has risen more than 30 per cent, drawing a wave of foreign interest in Chinese equities, both into active and passive funds.