Phillip Capital Management (HK), or PCMHK, launched and listed the Phillip HK Newly Listed Equities Index exchange-traded fund (ETF) on the Stock Exchange of Hong Kong (HKEX) on Nov 21.
Co-designed and developed between Solactive and PCMHK, the ETF tracks the Solactive Hong Kong Newly Listed Equities Index. Said to be the first ETF of its kind, the ETF’s constituent holdings contain a variety of stocks that range from pharmaceutical to communications companies.
It will mainly invest in Hong Kong-listed equities that have seen their initial public offering (IPO) within the last rolling three years, which means investors can gain exposure to up-and-coming large IPOs with high growth potential while diversifying risk at the same time with a diverse list of constituents from all sectors.
According to PCMHK, Hong Kong’s IPO outlook is also set to improve as one of the largest recipients of Mainland Chinese companies’ primary and secondary listings, and with the Covid-19 regulations slated to be relaxed by the end of 2022.
“Growth companies with a vision and plan for growth will continue in tandem with the vibrant markets of Hong Kong. Despite the market turmoil, companies that are agile, innovative and can win the trust of investors will continue to win,” says Linus Lim, director of PCMHK.
The ETF is listed on the HKEX at HK$10 ($1.76) per share, with 100 shares per board lot.
