China Asset Management (Hong Kong) Launches Hong Kong’s First China Treasury and Policy Bank Bonds ETF

ChinaAMC Bloomberg Barclays China Treasury + Policy Bank Bond Index ETF offers global investors new opportunities in the world’s third largest bond market

China Asset Management (Hong Kong) Limited (“ChinaAMC (HK)”), a leading Chinese fund management company, announced the launch of the ChinaAMC Bloomberg Barclays China Treasury + Policy Bank Bond Index ETF (Bloomberg Ticker: 2813 HK Equity; 82813 HK Equity) today. The ETF is the first of its kind in Hong Kong that tracks the performance of China treasury and policy bank bonds.

Listed on the Hong Kong Stock Exchange, the new ETF provides investment results that closely correspond to the performance of the Bloomberg Barclays China Treasury + Policy Bank Index (“The Index”, Bloomberg Ticker: I32561CN Index). The Index reflects the performance of fixed rate RMB-denominated treasury bonds and policy bank bonds with a minimum of one year to maturity listed on the China inter-bank bond market. It is a sub-index of the flagship Bloomberg Barclays China Aggregate Index.

“Following Bloomberg’s announcement in March to add Chinese RMB-denominated government and policy bank securities into the Bloomberg Barclays Global Aggregate Index, we see an increasing appetite from global investors for Chinese bonds,” said Dr. Frank Xiaoling Zhang, CEO of ChinaAMC (HK). “China’s high grade government bonds with the most liquidity and least credit risk make it a primary choice for investors who are taking the first step to investing in China’s bond market. We see emerging opportunities in this market and are pleased to select Bloomberg as the benchmark index provider for our first China fixed income ETF.”

According to data from China Central Depository & Clearing Co., Ltd., the volume of outstanding China treasury bonds was RMB12.4 trillion (USD1.94 trillion) at the end of April 2018. Foreign ownership of China treasury bonds reached RMB780.8 billion (USD121.9 billion), an increase of more than 84.2 percent from a year earlier. Foreign ownership of China treasury bonds increased from 3.9 percent to 6.3 percent year on year. Bloomberg recently announced that starting April 2019, it will add Chinese RMB-denominated government and policy bank securities to the Bloomberg Barclays Global Aggregate Index, once several planned operational enhancements are implemented by the People’s Bank of China and Ministry of Finance.

“Treasury and policy bank bonds are the most liquid type of bonds in the China Bond Market,” said Norman Tweeboom, Head of Portfolio & Index Sales for Asia-Pacific at Bloomberg. “With the new ETF, global investors now have a new avenue to gain exposure to the world’s third largest single country bond market and a transparent and low cost approach to trade and hunt for yield.”

With a 45-year tradition, the Bloomberg Barclays Indices are the most widely-used indices for fixed income investors seeking objective, rules-based and representative benchmarks to measure asset class risk and returns. A leader in fixed income investing, Bloomberg Barclays Indices offer unmatched market coverage, including global fixed income, inflation-linked and swap benchmark indices.

For more information about the new ETF, please visit https://www.chinaamc.com.hk/en/products/etf/bloomberg-barclays-china-treasury-policy-bank-bond-index/fund-details.html. For more information about Bloomberg Barclays indices, please visit https://www.bloombergindices.com/bloomberg-barclays-indices/. Bloomberg terminal subscribers can access the Bloomberg Barclays Indices at IN<GO>.

About China Asset Management (Hong Kong) Limited
China Asset Management (Hong Kong) Limited (“ChinaAMC (HK)”) is a wholly-owned subsidiary of China Asset Management Co., Ltd and was incorporated in Hong Kong in September 2008. As a top Chinese fund management company in Hong Kong, ChinaAMC (HK) is committed to developing offshore and cross-border asset management businesses by leveraging the expertise of its experienced investment and research teams and its shareholder companies’ resources, services and connections in Mainland China. Our vision is to become a pillar of the international financial architecture, helping to bridge the markets between China and the rest of the world. As an advocate of globalized financial markets, ChinaAMC (HK) is a diversified and integrated asset management company. We have a broad range of product lines, including long-only funds, hedge funds, exchange traded funds (ETF), leveraged/inverse products, bond funds, segregated accounts, funds of funds (FOF) and private equity funds (PE Funds). Our team of experts offers in-depth knowledge and experience, and they provide advisory services aimed at achieving great outcomes for both individual and institutional investors in Asia, Europe and the U.S.

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Media Contact:

ChinaAMC (HK)
Ivy Tse
+852-34068696
ivy.tse@chinaamc.com

Bloomberg
Irene Gu
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Igu3@bloomberg.net