Media Report | E Fund (HK) launches MSCI China A50 ETF
Published time:[14 Dec, 2021 16:40]

(Reference by scitech and digital news, original title: E Fund (HK) launches MSCI China A50 ETF along with ChinaAMC&CSOP)

E Fund Foreword:

Our channel has explained lots of knowledge of MSCI China A50 Connect Index before. Today I will tell you a good news! In response to the market's enthusiasm for A50 index-related products, E Fund HK have launched a product today!  

E Fund Management (HK) announced the launch of the “E Fund (HK) MSCI China A50 Connect ETF” or “E Fund A50” (stock code 03111) on the HKEX, listing December 14th. The ETF tracks the performance of the MSCI China A50 Connect Index, which selects 50 stocks from the component stocks in the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, focusing on China A Shares core assets. At the same time, two other asset management companies in Hong Kong, ChinaAMC (HK) and CSOP have already launched similar ETF products along with E Fund (HK) in this week.

Increased the proportion of new economy

The counter codes for E Fund A50 are 03111 for HKD and 83111 for RMB respectively. Each board lot is 100 unit, priced at 2.6RMB. And minimum subscription fee per lot is 260 RMB. Nick Li, Director of E Fund HK Product and Solution, mentioned that the companies contained in the MSCI China A50 Connect Index has two distinct characteristics. First, the index focuses on larger companies with high index weights. And second, it seeks broad sector exposure for greater diversification. The index selects the two largest securities from each of the 11 GICS® sectors, the remaining 28 securities are selected from the parent index by index weight until the total count reaches 50. The index has increased the proportion of the new economy, and raised the specific weights of new energy, electronics, medicine and other sectors, each industry accounts for no more than 20%. In the era of carbon neutrality, and peak emissions, aging population, consumption upgrade, and technological innovations, this change of index weighting can better reflect the future prospects of China's development.


The index has a cumulative return rate of nearly 170% over 9 years

Compared with similar indexes, the MSCI China A50 index includes a leading new energy company with a total market value of 1.5 trillion yuan, which ranks first in terms of weight in the index. 

Although focusing on the large-cap blue chip stocks, the index has more balanced industry distributions, designed with future in mind, making it a more effective index reflecting China A-share development. From November 30, 2012, which is the base date of the index, through nine years ending November 30, 2021, the index has a cumulative return rate of nearly 170%. In June 12, 2015, the index reached its first peak because of bull market, and reached further new heights ever since. By the end of November, 2021, the index's return rate was nearly 30% comparing to the peak of June 12, 2015.(Data collects from Wind)

Three Hong Kong asset management companies headed by E Fund (HK) will launch ETF products that track the performance of the MSCI China A50 Connect Index. The remaining two products are ChinaAMC MSCI China A50 Connect ETF (02839) and CSOP MSCI China A50 Connect ETF (03003).


1.E Fund (HK) MSCI China A50 Connect ETF (the Fund) is a passively managed exchange traded fund (ETF) and is traded on the Stock Exchange of Hong Kong (SEHK) like stocks. The investment objective is to provide investment result that, before fees and expenses, closely corresponds to the performance of the MSCI China A 50 Connect Index (the Index). The Manager will adopt a combination of a physical representative sampling strategy and a synthetic representative sampling strategy. For direct investments in Index Securities listed on the Shanghai and Shenzhen stock exchanges, the Fund will invest primarily through the Stock Connect and/or the Managers QFI status. By adopting a synthetic representative sampling sub-strategy (which involves investing up to 50% of its NAV in FDIs), the Fund will only invest directly in funded total return swap transaction(s)

2.The Fund is subject to a) Investment risk, b) Equity market risk, c) New Index risk, d) Concentration risk and Mainland China market risks, e) Risks associated with the Stock Connect and QFI regime , f) Risks associated with investments in FDIs, g) Trading differences risk, h) Passive investments risk,, i) Trading risk, j) Tracking error risk, k) Dual counter risks, l) PRC tax risk, m) Reliance on market maker risk, n) Other currency distribution risk, o) Termination risk..

3.Based on professional and independent tax advice, (i) the Fund will make relevant provision of 10% on dividend and distribution income from A-Shares if PRC corporate income tax (CIT) is not withheld at source at the time when such income is received (where CIT is already withheld at source, no provision will be made) and (ii) the Manager does not currently make withholding income tax provision for gross realised or unrealised capital gains derived from trading of A-Shares (either via Stock Connect or QFI).

4.There are risks and uncertainties associated with the current PRC tax laws, regulations and practice in respect of capital gains realised via QFI or Stock Connect on investments in the PRC (may have retrospective effect).   Any increased tax liabilities on the Fund may adversely affect the Funds value.  If taxes are levied in future on the Fund for which no provision is made, the Funds NAV will be adversely affected.  In this case, the then existing and subsequent investors will be disadvantaged as they will bear for a disproportionately higher amount of tax liabilities as compared to the liability at the time of investment in the Fund.  

5.You should not make any investment decision solely based on the information on this material alone. Please read the relevant offering documents for details including the risk factors before making any investment decisions. Investment involves risk. Past performance is not indicative of future performance. This document has not been reviewed by the Securities and Futures Commission of Hong Kong.