Sun, Nov 22, 2020 – 10:00 AM
INVESTORS will have easier access to Hong Kong-listed technology stocks next month, as OCBC works towards the listing of a tech-focused exchange-traded fund on the Singapore Exchange. (see amendment note)
The Lion-OCBC Securities Hang Seng TECH ETF will track the Hang Seng TECH Index, which is made up of the top 30 technology companies listed in Hong Kong by market capitalisation.
As at end-October, the index’s five largest constituents by weight were Tencent, Meituan Dianping, Sunny Optical, Alibaba and Ali Health.
The index returned 36.25 per cent in 2019 and 35.30 per cent in the first half of this year.
Investors will be able to trade as few as 10 units each time. As the issue price is S$1.34 per unit, this means a single trade can cost less than S$20 – excluding commissions and fees. The ETF will also be available in US dollars, priced at US$1 per unit.
The initial offering period runs from Nov 23 to Dec 7, and the target list date on the Singapore bourse is Dec 10.
The ETF will be managed by OCBC’s asset management arm Lion Global Investors. The bank’s securities trading arm OCBC Securities is a participating dealer and strategic partner.
Other participating dealers are iFAST Financial, Phillip Securities and UOB Kay Hian.
OCBC Securities said its customers have shown increased interest in the Hong Kong market, with trading volumes up more than 30 per cent on-year in the year to October. Chinese technology companies have consistently been among the top traded counters.
OCBC Securities managing director Wilson He noted technology stocks have benefitted from changes in consumer behavior as well as digital transformations of businesses.
The ETF also gives investors a means of expressing their view on fundamental changes happening in geopolitics, said Lion Global Investors’ chief executive officer Gerard Lee.