Lion-OCBC Securities China Leaders ETF

Fund Description

Key Features

• 1

  Tap into 80 China market giants

  The Lion-OCBC Securities China Leaders ETF is passively managed to fully replicate the Hang Seng Stock Connect China 80 Index.

  The key features of the ETF include:

  • Exposure to 80 largest Chinese companies listed on HKEX, SZSE and SSE
  • Capped at 8% and 40% weightage for individual stocks and sectors respectively during rebalancing
  • Rebalanced quarterly (every March, June, September and December)

  

• 2

  Less vulnerable to foreign regulatory risks

  Between 2 August 2021 (ETF’s listing date) and 30 September 2022, the Hang Seng Stock Connect China 80 Index cumulatively outperformed other China-focused indices such as the MSCI China Index, MSCI Emerging Markets Index and the Shanghai Shenzhen CSI 300 Index.

  The cumulative outperformance (as of 30 September 2022) can be attributed to the Index’s exclusion of American Depositary Receipts (ADRs). 

  This exclusion helped reduce the Index’s exposure to the foreign regulatory risks that negatively impacted US-listed Chinese companies. 

  This came through especially when the US Securities and Exchange Commission (SEC) conclusively identified to potentially delist 164 companies that failed to comply with the Holding Foreign Companies Accountable Act (HFCAA) as of 30 September 2022.