HONG KONG, July 10, 2024 /PRNewswire/ — Bosera China Reform Hong Kong Central-SOEs High Dividend Yield Index ETF (HKD-Counter Ticker: 3437.HK) commenced trading on the Hong Kong Stock Exchange ("HKEX") today, marking the first investment product in the Hong Kong market dedicated to the theme of central state-owned enterprises (SOEs), offering local and international investors a new tool to access high-quality Chinese SOE assets.
The listing of this innovative product, Bosera China Reform Hong Kong Central-SOEs High Dividend Yield Index ETF, is an important accomplishment of the strategic cooperation between Bosera Asset Management (International) Co., Limited and China Reform Holdings Corporation Limited. The ETF closely tracks the CSI China Reform Hong Kong Connect Central-SOEs High Dividend Yield Index, which consists of nearly 50 high-quality central-SOEs listed in Hong Kong that are industry leaders with substantial profitability, strong cash flow, and considerable dividend yields. The constituents cover sectors like energy, communication services, industrials, utilities, and health cares, which are crucial to national economy and people’s livelihood.
The launch of Bosera China Reform Hong Kong Central-SOEs High Dividend Yield Index ETF provides global investors with an efficient and convenient investment tool to deploy in China’s most competitive central state-owned enterprise groups with one click and share the benefits of high-quality development of the Chinese economy.
Especially with the current global economic environment uncertainties, the index constituent stocks tracked by this ETF demonstrate strong risk resilience and long-term value due to their stable dividend, high liquidity, and relatively low valuations, making them an ideal investment allocation for investors’ portfolios.
Notably, as of December 29, 2023, the average dividend yield of the top ten constituent stocks of the CSI China Reform Hong Kong Connect Central-SOEs High Dividend Yield Index over the past year reached approximately 7.86% (data sources: WIND, China Securities Index Company), highlighting the significant advantage of the central enterprises in dividend returns and providing investors with considerable cash flow support and long-term earnings potential.
With the State-owned Assets Supervision and Administration Commission of the "State Council" strengthening the market value management of listed central state-owned enterprises and "the ‘State Council’s’ Nine-Point Guideline" encouraging cash dividend policies, the international competitiveness and influence of China’s central SOEs, as well as their dividend payouts, are expected to continue to increase, creating more value for investors. The listing of Bosera China Reform Hong Kong Central-SOEs High Dividend Yield Index ETF is in line with this trend, aiming to provide domestic and foreign investors with an efficient, safe, and convenient investment platform through professional investment management and transparent operating mechanisms to participate in the growth of China’s central SOEs.
At the same time, the successful launch of Bosera China Reform Hong Kong Central-SOEs High Dividend Yield Index ETF is also expected to attract more diversified capital flows to relevant Hong Kong-listed central enterprises, bringing new momentum to their reform and development, helping central enterprises enhance their market recognition and value realization in international capital markets, and contributing to the high-quality development of these enterprises.
As Christopher Hui, Secretary for Financial Services and the Treasury of Hong Kong said in his speech at the listing ceremony, "The listing of the first ETF product focused on central state-owned enterprises in Hong Kong is a new milestone for Hong Kong to connect central state-owned enterprises with international capital and promote linkage between domestic and international markets. Going forward, we hope to continue to leverage Hong Kong’s international financing platform to guide more international capital and industrial resources to invest in high-quality Hong Kong-listed central state-owned enterprises, supporting their high-quality development."
About Bosera Asset Management (International) Co., Limited
Bosera Asset Management Co., Limited ("Bosera" or the "Company") is one of the first 5 fund management companies established in mainland China, and also one of the largest fund houses in terms of assets under management in China.
Established on March 4, 2010, Bosera International is one of the first Chinese-based fund companies to launch an asset management business in Hong Kong. Since its establishment, Bosera International has grasped the opportunity of global asset allocation, adhered to the concept of value investment, formed a comprehensive product line with primarily focusing on stable fixed-income investment and covering active equity and passive index, and actively established partnerships with other international companies, to provide global investors with two-way and cross-border asset management services. Bosera International serves customers in major financial markets such as the United States, Europe, South Korea, Singapore, and Hong Kong. With 14 years of deep cultivation in Hong Kong, Bosera International has become one of the largest Chinese asset management companies in Hong Kong.
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