Lion-OCBC Securities Hang Seng TECH ETF

Fund Description

Key Features

• 1

  Exposure to long term growth of Chinese tech companies

  For investors seeking global leaders, China's tech space features the world's largest EV battery maker, the world's largest solar wafer and cell makers, and the world's largest IoT platform and hardware maker. 

  For believers of de-globalization and domestic replacement, we believe there are plenty of companies in the semiconductor and semiconductor equipment subsectors that offer strong, durable growth potential in large addressable markets. 

  These stocks typically trade at high multiples, but the recent pullback across China's tech sector has made them less expensive and has created especially attractive entry points, in our view.

• 2

  Support for the Platform Economy

  During the State Council meeting chaired by Premier Li Keqiang on 7 September 2022, China’s cabinet pledged to support the platform economy in keeping employment stable. 

  Specifically, financial institutions will also be guided to extend special loan support to key platform companies.

  To promote new forms of foreign trade, China’s cabinet also undertook to establish new integrated pilot zones for cross-border e-commerce without delay on 13 September 2022. 

  Greater support was specifically highlighted for building overseas warehouses. 

  All these are expected to build the long-term foundation for the Chinese tech sector.

• 3

  Qualified IPOs included in Index shortly after listing

  The index is reviewed quarterly and has an IPO fast entry rule which allows for the direct inclusion of a newly listed company if it meets certain criteria. 

  The weighting of each stock in the Index is capped at 8%.