Bosera ETF debuts on HKEX with a focus on central state-owned enterprises

This will allow domestic and foreign investors to access Chinese SOE assets.

Bosera China Reform Hong Kong Central-SOEs High Dividend Yield Index ETF began trading at the Hong Kong Stock Exchange (HKEX) yesterday, making this the first investment product in the market dedicated to the theme of central state-owned enterprises (SOEs), offering domestic and foreign investors a new tool to access Chinese SOE assets.

"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." Christopher Hui, Secretary for Financial Services and the Treasury of Hong Kong said in a press release.

The ETF, launched through a collaboration between Bosera Asset Management and China Reform Holdings, tracks the CSI China Reform Hong Kong Connect Central-SOEs High Dividend Yield Index. 

This index includes nearly 50 industry-leading central SOEs in sectors like energy, communication services, industrials, utilities, and healthcare.

With a focus on high dividend yields, this ETF offers global investors a convenient way to invest in China's central SOEs.

As of December 2023, the average dividend yield of the top ten constituent stocks was about 7.86%, providing strong cash flow support and long-term earnings potential.

The ETF's launch aligns with the Chinese government's efforts to strengthen market value management and promote cash dividend policies for SOEs. 

This new investment tool is expected to attract diversified capital flows, enhance market recognition, and contribute to the high-quality development of China's central SOEs.