HONG KONG – (COMMERCIAL THREAD) – CSOP Asset Management Limited (“CSOP”) is proud to announce the listing of the CSOP China Healthcare Disruption Index ETF (ticker symbol: 3174.HK) on the Hong Kong Stock Exchange (the “HKEX”). 3174.HK will track the performance of the Solactive China Healthcare Disruption Index (the “Index”). With a listing price of around 7.8 HKD per unit, a batch of 100 shares, and an annual management fee of 0.99%, the CSOP China Healthcare Disruption Index ETF will start trading on July 21, 2021. Upon from its inception, 3174.HK received approximately 103 HKD. million initial investment.
The healthcare sector includes a wide range of industries including biotechnology, internet medical services, drug discovery and manufacturing services, and many other related services. Since Covid-19 hit the world by surprise, the healthcare sector has received unprecedented attention. In 2018, global health spending reached $ 8.3 trillion, or 10% of global gross domestic product (GDP). 1 It is expected to grow at an annual rate of 4.9% from 2018 to 2022, reaching $ 10.05 trillion in 2022. 2 Currently, China has the second largest healthcare industry in the world. Compared to a five-year compound annual growth rate (“CAGR”) of 4% in the United States, the Chinese healthcare market has grown rapidly at a CAGR of 17%.3 The size of the Chinese healthcare market is expected to reach approximately $ 2.4 trillion by 2030.4 The appearance of Covid-19 as well as the aging of the Chinese population have also presented considerable growth opportunities for the health sector, especially in sub-sectors such as telemedicine and biotechnology. Strongly featured in the 13th Five-Year Plan and Healthy China 2030 Strategy, Internet-based healthcare in China has maintained a high CAGR of over 30%.5 Chinese government spending on biotechnology research and development (“R&D”) topped US $ 291 billion in 2019, as companies raised US $ 16.5 billion through 90 equity and debt offerings , i.e. an increase of 17% in volume and 13% in value compared to 2018. 6
In 2020, the healthcare sector in the Hong Kong stock market exhibited strong growth momentum and garnered considerable market interest with 23 newly listed healthcare companies, raising a total of HKD 98 billion. 7 To replicate the strong performance of the rapidly growing healthcare sector in Greater China, the Solactive China Healthcare Disruption Index comprehensively invests in up to 35 most representative Hong Kong-listed companies with business activities in Mainland China, in Hong Kong, Taiwan and Macau. These companies focus on a variety of innovative fields, ranging from biotechnology and medical specialties to biopharmaceuticals, healthcare equipment, online pharmacies and drug retailing. Based on historical back-testing data, the index achieves a 36.6% return over the previous 12 months.8 Weighted by the free float market capitalization of the constituents, the Index ensures the inclusion of the most representative companies in the Greater China healthcare sector with a combined program of quarterly rebalancing and weekly IPO reviews. At the end of May 2021, the total market capitalization of the index was HKD 2.98 trillion.9 Primarily adopting a physical representative sampling strategy to replicate the index, 3174.HK enables investors around the world to seize healthcare investment opportunities in a simple and transparent manner.
The future of human beings depends on a smarter, greener and healthier lifestyle. As a pioneering ETF issuer in Hong Kong, CSOP has always been committed to providing ETFs / ETPs that not only meet the requirements of asset allocation, but also present the investment outlook. 3174.HK is an important member of CSOP’s up-and-coming thematic ETFs.
Melody He, Managing Director, Head of Business Development and Product Strategy & Solutions, said: “We are delighted to bring another future-themed ETF to our investors. The launch of 3174.HK enables investors to seize investment opportunities by pursuing healthier lives in a more simple and transparent way. Among the series of future thematic ETFs CSOP, CSOP Hang Seng TECH Index ETF (3033.HK), CSOP Yinhua CSI 5G Communications Theme ETF (3193.HK)ten and CSOP Global Cloud Computing Technology Index ETF (3194.HK) are our answers to the growing demand for a smarter lifestyle. CSI Huatai-Pinebridge CSOP Photovoltaic Industry ETF (3134.HK)11 additionally completes an important piece of the puzzle for greener living. More CSOP-themed ETFs will hit the market, revealing the future of investing in front of investors.
About CSOP Asset Management Limited
CSOP Asset Management Limited (“CSOP”) was founded in 2008 as the first offshore asset manager established by a regulated asset management company in China. With a focus on investing in China, CSOP manages public and private funds, and provides investment advisory services to Asian and global investors. In addition, CSOP is best known as a leader in ETFs in Asia. As of March 31, 2021, CSOP has over $ 10 billion in assets under management.
This document has not been reviewed by the Securities and Futures Commission.
Issuer: CSOP Asset Management Limited
Please refer to the offering documents for the disclaimer of the index provider.
IMPORTANT: Investing involves risks. The investment value can increase or decrease. The information on past performance presented is not indicative of future performance. Investors should refer to the Prospectus and the Key Product Information Statement for further details, including product characteristics and risk factors. Investors should not rely solely on this material to make investment decisions.
ETF CSOP China Healthcare Disruption Index:
CSOP China Healthcare Disruption Index ETF (the “Sub-Fund”) is not guaranteed for capital and your investments may suffer losses. There can be no assurance that the Sub-Fund will achieve its investment objective.
The Solactive China Healthcare Disruption Index (the “Index”) is a new index. The Sub-Fund may be riskier than other exchange traded funds replicating more established indices with a longer operating history.
The Index is subject to geographic concentration risks as a result of monitoring the performance of companies listed primarily in Hong Kong that have healthcare business activities in Mainland China, Hong Kong, Taiwan and Macao. . The value of the Sub-Fund may be more sensitive to adverse economic, political, political, currency, liquidity, tax, legal or regulatory events affecting the Hong Kong market and the locations where these companies do business, including China. mainland, Taiwan and Macao.
Risks associated with FDIs include counterparty / credit risk, liquidity risk, valuation risk, volatility risk and OTC transaction risk. FDIs are sensitive to price fluctuations and higher volatility, and may have large bid and bid spreads and no active secondary markets. The leverage element / component of an FDI may result in a loss significantly greater than the amount invested in the FDI by the Sub-Fund. Exposure to FDI may result in a high risk of significant loss for the Sub-Fund
The trading price of Shares on SEHK is determined by market factors such as the demand for and supply of Shares. Consequently, the Shares may be traded at a substantial premium or discount to the NAV of the Sub-Fund.
Please note that the investment risks listed above are not exhaustive and investors should read the Prospectus and the Key Product Information Statement in detail before making any investment decision.
1 Source: WHO, Global health expenditure: weathering the storm, 20202 Source: Deloitte, Global Healthcare Outlook 2019: Shaping the Future3 Source: WHO, 20184 Source: Chinese National Health and Family Planning Commission (NHFPC)5 Source: Frost & Sullivan, 36Kr Research, China Internet Medical Market Scale and Forecast 2012-20266 Source: Baker McKenzie, The Future of Capital Raising in Biotech and Pharma7 Source: HKEX, February 20218 Source: Solactive AG, June 29, 20219 Source: Bloombergten 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 a direct public offering in Hong Kong.
11 CSOP Huatai-PineBridge CSI Photovoltaic Industry ETF is a feeder fund. Its master fund, Huatai-PineBridge CSI Photovoltaic Industry ETF, is not authorized by the Securities and Futures Commission for a direct public offering in Hong Kong.