HONG KONG, Nov. 18 /PRNewswire-Asia/ -- Five new iShares Exchange Traded Funds (ETFs) began trading today on the Stock Exchange of Hong Kong. The newly listed ETFs include the world's first China A-Share Sector ETF Series. The new funds recorded a total turnover of more than HKD100 million in their first-day of trading.
The individual turnover and closing price of the five ETFs on November 18, 2009 were as follows:
iShares China A-Share ETF Series Turnover(1) Closing
(HKD million) price (2)
(HKD)
iShares CSI A-Share Energy Index ETF
(Stock Code:3050) 14.4 16.34
iShares CSI A-Share Financials Index ETF
(Stock Code: 2829) 16.1 15.74
iShares CSI A-Share Infrastructure Index ETF
(Stock Code: 3006) 6.7 15.78
iShares CSI A-Share Materials Index ETF
(Stock Code: 3039) 35.0 15.94
iShares CSI 300 A-Shares Index ETF
(Stock Code: 2846) 28.3 31.65
Commenting on the first trading day of the five new products, Nick Good, CEO of iShares Asia-Pacific, said, "The listing of the world's first China A-Share Sector ETF Series reflects our commitment to offering products uniquely relevant to investors in Asia.
Listing of these new iShares ETFs coincided with the 5 year anniversary of the launch of the iShares FTSE/Xinhua A50 China Index ETF (stock code: 2823) - the largest and most heavily traded ETF in Asia(3).
iShares is the world leader in ETFs with more than USD451 billion (4) in assets under management in ETFs. More than 390 iShares ETFs (5) are currently available in markets around the world covering a comprehensive range of asset classes, market sectors and segments.
(1) HKEx
(2) HKEx
(3) Bloomberg, as of 31 August 2009
(4) "ETF Landscape Industry Review, as at end Q3 2009", Barclays Global Investors
(5) Ibid
Notes to Editors
About iShares ETFs
iShares ETFs are index funds managed by Barclays Global Investors that are bought and sold like ordinary equities on a stock exchange. iShares ETFs are attractive to many individual and institutional investors and financial intermediaries because of their relative low cost and trading flexibility. Investors can purchase and sell iShares through any brokerage account. ETFs generally can be used to achieve many investment strategies:
-- for buy and hold investing
-- for active traders who wish to take advantage of market movements
-- for investors wishing to hedge the market
-- to enhance returns on cash deposits by equitising
-- as an alternative to futures and other institutional investment tools
For more information, please visit http://www.ishares.com.hk .
About Barclays Global Investors
Barclays Global Investors is one of the world's largest asset managers and a leading global provider of investment management products and services with more than 2,900 institutional clients and US$1.7 trillion of assets under management as of 30 June 2009. BGI transformed the investment industry by creating the first index strategy in 1971 and the first quantitative active strategy in 1979.
Index Disclaimer
CSI Indices are compiled and calculated by China Securities Index Co. Ltd ("CSI"). CSI will apply all necessary means to ensure the accuracy of the CSI300 Indices. However, neither CSI nor the Shanghai Stock Exchange nor the Shenzhen Stock Exchange shall be liable (whether in negligence or otherwise) to any person for any error in the CSI Indices and neither CSI nor the Shanghai Stock Exchange nor the Shenzhen Stock Exchange shall be under any obligation to advise any person of any error therein. All copyright in the index values and constituent list vests in CSI.
The FTSE/Xinhua China A50 Index is calculated by or on behalf of FTSE/Xinhua Index Limited ("FXI"). All marks are licensed for use by FXI. FXI does not sponsor, endorse or promote the iShares A50 China Index ETF. "FTSE" is a trademark jointly owned by the London Stock Exchange PLC and The Financial Times Limited. "Xinhua" is a service and trademark of Xinhua Financial Network Limited.
Disclaimer
This press release has been issued in Hong Kong by Barclays Global Investors North Asia Limited and has not been reviewed by the Securities and Futures Commission. This document is for informational purposes and does not constitute an offer or solicitation to purchase or sell units in any iShares funds, nor shall any units be offered or sold to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. Past performance is not indicative of future results. Certain information in this press release may be taken from external sources, which we consider reliable. We do not represent that this information is accurate or complete and should not be relied upon as such. Any opinions contained herein, which reflect our judgment at this date, are subject to change.
iShares(R) is a registered mark of Barclays Global Investors N.A.
(C) 2009 Barclays Global Investors
IMPORTANT: Investments involve risks, including the loss of principal. Investors should not only base on this document alone to make investment decisions. Investors should refer to the relevant prospectus for further details, including the product features and risk factors. Investors are advised to consider their own investment objectives and circumstances in determining the suitability of an investment in any of the Index Funds described in this document. An investment in an Index Fund may not be suitable for everyone. If you are in any doubt about the contents of this document, you should consult your stockbroker, bank manager, solicitor, accountant or other financial adviser for independent financial advice.
-- Each fund described in this document (called an "Index Fund") aims to provide investment results that, before fees and expenses, closely correspond to the performance of its underlying Index. Each Index Fund is subject to concentration risk as a result of investing into a single country and sector. Additional risks are involved in investments concentrating within sectors. Adverse developments within sectors/industries may affect the value of the underlying Securities in which the Index Fund invests.
-- The Index Funds do not invest directly in China A-Shares but instead gains access to the A-Share market by investing into China A-Share Access Products (CAAPs), which are derivative instruments linked to an A-Share or the Index issued by third parties ("CAAP Issuers"). The iShares CSI 300 A-Share Index ETF, also invests in the iShares CSI Sector Index Funds, which in turn invest into CAAPs. A CAAP represents only an obligation of each CAAP Issuer to provide the economic performance equivalent to holding the underlying A-Shares.
-- The qualified foreign institutional investor ("QFII") policy and rules are subject to change and any such change could adversely impact the Index Funds. In the worst case scenario, this could lead to Index CAAPs not being able to be issued and the Index Funds having to be terminated.
-- The Manager seeks to manage the exposure to each CAAP Issuer to 10% of the Net Asset Value of each Index Fund. The Manager may from time to time, in consultation with the Trustee, seek credit support (such as cash or listed stock collateral) from any CAAP Issuer (or an affiliate) in managing the exposure to such CAAP Issuer.
-- The Index Funds are subject to counterparty risk associated with each CAAP Issuer and may suffer losses potentially equal to the full value of the CAAPs issued by a CAAP Issuer if such CAAP Issuer fails to perform its obligations under the CAAPs. Any loss would result in a reduction in the net asset value of the Index Fund and impair the ability of the Index Fund to achieve its investment objective to track the relevant Index. In the event of any default by a CAAP Issuer dealing may be suspended and the Index Fund may not continue to trade.
-- PRC withholding tax is not currently enforced on capital gains realised by QFIIs on the sale of A-Shares. There is a risk the PRC tax authorities may seek to collect tax on capital gains without giving any prior warning, and possibly, on a retrospective basis. Any capital gains tax levied on and payable by a QFII may be passed on to the Index Funds to the extent that the tax is attributable to their holdings of Index CAAPs. Certain CAAP Issuers may withhold an amount equal to 10% of any gain on a CAAP on account of PRC CGT. Tax provisions are not made at the Index Fund level and therefore any retrospective enforcement may result in a substantial loss to the fund.
-- The iShares CSI 300 A-Share Index ETF is subject to additional tracking error and investment risks associated with a significant allocation to the iShares CSI Sector Index Funds including liquidity, trading, and regulatory risks. Specifically, the iShares CSI 300 A-Share Index ETF is subject to the risk of higher tracking error and greater deviation between trading price and NAV and will be adversely affected by the trading suspension of any iShares CSI Sector Index Fund.
-- Generally, investments in emerging markets are subject to a greater risk of loss than investments in a developed market due to greater political, economic, taxation and regulatory uncertainty and risks linked to volatility and market liquidity, etc.
-- The Index Funds are traded on the SEHK. Their prices on the SEHK are based on secondary market trading factors and may deviate significantly from the net asset value of the relevant Index Fund.
Media Contacts
Barclays Global Investors
Angela Yeung
Tel: +852 2295 5241
Email: angela.yeung@barclaysglobal.com
Barclays Global Investors
Sam Tsui
Tel: +852 2295 5258
Email: sam.tsui@barclaysglobal.com
APCO Worldwide
Catherine Wong
Tel: +852 2826 9377
Email: cwong@apcoworldwide.com
APCO Worldwide
Priscilla Wong
Tel: +852 2826 9323
Email: pwong@apcoworldwide.com
