Taikang launches money market funds as it breaks into exchange trading

Dual-currency, actively managed funds to list on HKEX.

Taikang Asset Management (Hong Kong) Company Limited has launched its first exchange traded funds, introducing HKD and USD money market Exchange Traded Funds (ETFs) that will list and commence trading on the Hong Kong Stock Exchange (HKEX) on 29 January, according to a press release.

The products comprise the Taikang Hong Kong HKD Money Market ETF and the Taikang Hong Kong USD Money Market ETF. 

Both funds adopt actively managed strategies and invest primarily in short-term deposits and investment-grade money market instruments denominated and settled in their respective currencies.

Eligible assets include securities issued by governments, quasi-governments, international organisations, financial institutions and corporations. 

The ETFs aim to deliver returns in HKD and USD that align with prevailing Hong Kong money market rates, whilst offering daily liquidity through exchange trading.

The funds are offered in both listed and unlisted unit classes, allowing investors to trade units on the secondary market during trading hours or subscribe and redeem through distributors. 

Taikang Asset (HK) said the ETF launch marks its entry into the ETF segment, extending its existing asset management platform to provide cash management products with flexible access structures.