HSBC has facilitated the listing of two new cross-border ETFs under the China-Japan ETF Connectivity scheme. This allows international investors to indirectly invest in Chinese assets through feeder ETFs listed on the Tokyo Stock Exchange.
HSBC provided onshore QFII custody services to enable Daiwa Asset Management Co. Ltd to set up two new ETFs under this scheme and process the listing and trades. The iFreeETF China GBA100 debut in Japan marks the first overseas-listed Shenzhen Stock Exchange ETF tracking the SZSE GBA100 Index. The iFreeETF China STAR50 is the first overseas-traded STAR50 ETF in Asia, tracking the Shanghai Stock Exchange Science and Technology Innovation Board 50 Index (the STAR 50 Index) and covers the fastest growing high-tech companies in China. Since the China-Japan ETF Connectivity Scheme rolled out in 2019, HSBC has served as the QFII custodian for three of the five Japanese asset managers participating in the scheme.