HONG KONG--(BUSINESS WIRE)--CSOP Asset Management Limited (CSOP) is proud to announce the listing of CSOP Huatai-Pinebridge CSI Photovoltaic Industry ETF (stock ticker: 3134.HK) on the Hong Kong Stock Exchange (the “HKEX”). As the first pair of ETFs under the HKEX and the Shanghai Stock Exchange (the “SSE”) ETF Cross-Listing Scheme, 3134.HK will track the performance of the CSI Photovoltaic Industry Index (the index), before deduction of fees and expenses, by investing in the Huatai-Pinebridge CSI Photovoltaic Industry ETF1 listed on SSE via the QFI status. With listing price at around HKD 8 per share, trading lot of 100 and management fee of 0.99%, CSOP Huatai-Pinebridge CSI Photovoltaic Industry ETF will start to trade on 1 June, 2021. Upon inception, 3134.HK has received around RMB 53 million initial investment. On the same day, the feeder ETF investing in CSOP’s HKEX listed ETF - CSOP Hang Seng TECH Index ETF (stock ticker: 3033.HK) will also list on the SSE. The feeder ETF has already raised RMB 1.17 billion which will flow to 3033.HK before listing, boosting 3033.HK’s overall size and strengthening its leading status as the largest Hang Seng TECH index ETF in the world.2 Currently 3033.HK has assets under management over HKD 10 billion.3
Clean energy and carbon neutrality define the futures of mankind. China has put the carbon emission reduction into the 14th five-year plan formulation, with ultimate goal of achieving carbon neutrality in the long term.4 To materialize the goal, photovoltaic (PV) is the key solution to clean energy. PV refers to producing electricity from sunlight that can be used to power equipment or to recharge a battery. The whole PV industry chain includes the materials in the upstream, PV cells and modules in the midstream, and PV system in the downstream. PV is one of the high-conviction sectors in China with huge growth potential. In 2020, PV electricity generation increased 16.1% YoY, marking 3.47% of overall electricity generation.5 In 2020, PV electricity cumulative installed capacity reached 253GW, in 2035, PV electricity is expected to reach 600GW, more than doubling in cumulative installed capacity.6 With PV technology evolution, the cost of PV electricity will decrease significantly—hence, PV can become the major electricity source in the future. China is also the leading country in the PV industry regarding semiconductor materials, PV cells and modules, and PV system production.7
Weighted by free-float market capitalization, the CSI Photovoltaic Industry Index comprehensively contains 50 most representative China A-shares companies, capturing the performance of the whole PV industry chain from upstream to downstream. Rebalanced semi-annually, the index invariably ensures the most representative PV-related stock inclusion.8 As the end of 31 March, 2021, the index has market cap of RMB 1.568 trillion and return of 100.84% over the prior 12 months.9
To live smarter, healthier and greener has always been the development theme of human beings. As a leading ETF issuer in Hong Kong, CSOP not only provides ETFs/ETPs satisfying investors’ basic investment demands for asset allocation and trading, but also acts as a pioneer portraying the future of investment. The launch of 3134.HK is one of the strokes CSOP has been making to draw the blueprint of human future.
“Among the future thematic ETFs CSOP launched, CSOP Hang Seng TECH Index ETF (3033.HK) and CSOP Yinhua CSI 5G Communications Theme ETF (3193.HK)10 outline how human can live smarter; CSOP Huatai-Pinebridge CSI Photovoltaic Industry ETF (3134.HK) maps out in which human can live greener; and there will be more CSOP ETFs coming to the market, enabling investors to envisage the future of human beings," says Melody He, Managing Director, Head of Business Development and Product Strategy & Solutions.
About CSOP Asset Management Limited
CSOP Asset Management Limited (“CSOP”) was founded in 2008 as the first offshore asset manager set up by a regulated asset management company in China. With a dedicated focus on China investing, CSOP manages public and private funds, as well as providing investment advisory services to Asian and global investors. In addition, CSOP is best known as an ETF leader in Asia. As of 31 March 2021, CSOP has more than USD 10 billion in assets under management.
This material has not been reviewed by the Securities and Futures Commission.
Issuer: CSOP Asset Management Limited
Please refer to the offering documents for the index provider disclaimer.
IMPORTANT: Investment involves risks. Investment value may rise or fall. Past performance information presented is not indicative of future performance. Investors should refer to the Prospectus and the Product Key Facts Statement for further details, including product features and risk factors. Investors should not base on this material alone to make investment decisions.
The CSOP Huatai-PineBridge CSI Photovoltaic Industry ETF (the “Sub-Fund”) is a sub-fund of the CSOP ETF Series OFC (“Company”), which is a public umbrella open-ended fund company established under Hong Kong law with variable capital with limited liability and segregated liability between sub-funds. The Sub-Fund is a passively managed index tracking exchange traded fund (“ETF”) authorised under Chapters 7 and 8.6 of the Code on Unit Trusts and Mutual Funds. The shares of the Sub-Fund (the “Shares”) are traded on the Stock Exchange of Hong Kong Limited (the “SEHK”) like stocks.
SFC registration and authorisation do not represent a recommendation or endorsement of the Company or the Sub-Fund nor do they guarantee the commercial merits of the Company or the Sub-Fund or their performance. They do not mean the Company or the Sub-Fund is suitable for all investors nor do they represent an endorsement of its suitability for any particular investor or class of investors.
- The Sub-Fund is not principal guaranteed and your investments may suffer losses. There is no assurance that the Sub-Fund will achieve its investment objective.
- The Sub-Fund invests substantially in the Master ETF, and may therefore be subject to the risks associated with the Master ETF. The performance of the Sub-Fund depends on the price of the Master ETF. The ability of the Sub-Fund to meet its investment objective is also largely dependent on the Master ETF.
- The trading price of the Shares on the SEHK is driven by market factors such as the demand and supply of the Shares. Therefore, the Shares may trade at a substantial premium or discount to the Sub-Fund’s NAV.
- Given the Sub-Fund invests substantially in the Master ETF as a feeder fund, the Sub-Fund may also be subject to the risks associated with the Master ETF’s investments.
- Companies related to the photovoltaic industry or photovoltaic industrial chain may be subject to significant volatility in growth rates due to rapidly changing market conditions and/or participants, more advanced or new technologies, new competing products and/or enhancements in existing products. The photovoltaic industry is heavily dependent on patents and intellectual property rights and/or licences. The profitability of companies related to the photovoltaic industry may be adversely impacted by the loss or impairment of these intellectual property assets.
- Mainland China is considered as an emerging market and investing in mainland China market may be subject to greater economic, political, tax, foreign exchange, regulatory, volatility and liquidity risks than investing in more developed countries.
Please note that the above listed investment risks are not exhaustive and investors should read the Prospectus and the Product Key Facts Statement in detail before making any investment decision.
1 Source: Huatai-PineBridge CSI Photovoltaic Industry ETF is not authorized by the Securities and Futures Commission for direct offering to the public in Hong Kong
2 Source: CSOP Asset Management Limited
3 Source: Bloomberg, as of 31 May, 2021
4 Source: China 14 Five Year Plan
5 Source: National Energy Administration
6 Source: National Energy Administration and Xinhua Net
7 Source: International Renewable Energy Agency
8 Source: China Securities Index Co. Ltd
9 Source: China Securities Index Co. Ltd
10 CSOP Yinhua CSI 5G Communications Theme ETF is a feeder fund. Its master fund, Yinhua CSI 5G Communication ETF, is not authorized by the Securities and Futures Commission for direct offering to the public in Hong Kong.