AmInvest launches fund investing in Chinese tech giants

This enables investors to catch up with the tech sector’s growth opportunities

by NUR HAZIQAH A MALEK / Pic by TMR GRAPHIC

AMINVEST has launched its new Hong Kong Tech Index Fund to enable investors to catch on to the growth opportunities offered by the technology sector and the increasing number of technology companies listed in Hong Kong.

The fund will feed into the world’s first and largest exchange traded fund (ETF) which tracks the performance of the Hang Seng Tech (HSTECH) Index, namely CSOP Hang Seng Tech Index ETF.

AmInvestment Bank CEO Tracy Chen Wee Keng said the tech sector’s growth has been accelerated by the Covid-19 pandemic which, led to companies and businesses to speed up their digital transformation strategies.

“Touted as the Nasdaq of the East, the HSTECH Index which the target fund tracks, is expected to drive capital flows with Chinese technology companies, including Chinese unicorns and start-ups choosing to list closer to home.

“Trade tensions between the US and China have also increased the number of US-listed Chinese giants listing in Hong Kong,” Chen noted in a statement yesterday.

HSTECH Index consists of the 30 largest Greater China technology companies listed in Hong Kong. The companies have high business exposure to selected technology themes, including the Internet, financial technology, cloud, e-commerce and digital activities.

As at June 30, 2021, the top 10 constituents were companies such as Meituan, Alibaba Group Holding Ltd, Sunny Optical Technology Group Co Ltd, Tencent Holdings Ltd and Xiaomi Corp.

Since its inception in July 2020, the HSTECH Index has delivered returns of around 20%.

Meanwhile, AmInvest CEO Goh Wee Peng said the fund offers investors an easy, transparent and efficient investment tool to replicate the performance of the fast-growing Chinese technology sector, all through a single transaction.

“AmInvest is excited to partner with CSOP Asset Management Ltd as the target fund manager, which is a leading ETF manager and exchange traded product (ETPs) issuer in Hong Kong.

“With close to half of Hong Kong’s top traded ETPs during this year having been issued by CSOP, the company has established its brand as a reliable ETF issuer for the past nine years,” she said.

The target fund has been awarded the Top Performing ETPNet CashFlow, Top Breakthrough ETP-Average Daily Turnover and Top New ETP Listing-New CashFlow for 2020 by Hong Kong Exchanges and Clearing Ltd.

The HSTECH Index is designed for eligible stocks to be filtered by criteria of technology-enabled platform operations, research and development expenses to revenue ratio and revenue growth.

The qualified largest 30 counters in terms of market capitalisation are selected as index constituents and are reviewed on a quarterly basis.

AmInvest said a rule is also applied to ensure a timely inclusion of qualified potential constituents for possible investment appreciation opportunities in consideration of upcoming sizable technology companies.

AmInvest, the brand name for the funds management business of AmFunds Management Bhd and AmIslamic Funds Management Sdn Bhd, stated that the fund’s base currency is the Hong Kong dollar and is being offered for subscription to sophisticated investors in HK dollar and Malaysian ringgit and in ringgit-hedged classes at an initial offer price of HK$1 (RM0.54) and RM1 per unit respectively during the initial offer period until Aug 16, 2021.