HONG KONG – (COMMERCIAL THREAD) –CSOP Asset Management Limited (“CSOP”) relaunched its first fixed income ETF – CSOP Bloomberg China Treasury + Policy Bank Bond Index ETF (RMB Counter Stock Code: 83199, HKD Counter Stock Code: 3199) through the introduction of ICBC Asset Management (Global) Company Limited (“ICBC AM (Global)”), a wholly owned subsidiary of Industrial and Commercial Bank of China (Asia) Limited (“ICBC (Asia)”), as a non-discretionary advisor. The revival has already attracted significant additional investment from several institutional investors, bringing its assets under management to $ 785 million.1, equivalent to over 5 billion RMB, further strengthening its leadership as one of the largest Chinese government bond ETFs in the world. Listed as of February 2014, 3199.HK has achieved returns of 30.54%.2 As of August 31, 2021, its average yield to maturity is 2.90% and the effective duration is 5.86.3 Bolstered by ICBC AM (Global) ‘s cutting edge expertise in the Chinese fixed income market, 3199.HK will continue to provide investment opportunities in the rapidly growing onshore government bond market of the China.

The investment objective, strategy and lot size of 83199.HK/3199.HK will remain unchanged with a minimum investment of approximately 206 RMB or 2,500 HKD on 2 currency counters.4

The importance of the Chinese onshore market has become too important to be ignored. With a market size of $ 18 trillion, the Chinese bond market has become the second largest in the world, just behind the United States.5 The continued opening up of China’s onshore bond market suggests exciting opportunities for global investors. According to historical data, Chinese onshore bonds offer a higher yield with relatively lower exchange rate volatility compared to other major economies. In addition, the low correlation between Chinese onshore bonds and global bonds could potentially allow for greater diversification of investors’ portfolios.

It should be mentioned that in recent years, foreign investment has continued to flow into the Chinese onshore market. As of July 2021, foreign institutions held more than 3.7 trillion RMB (over $ 580 billion) of Chinese onshore bonds.6 Despite the huge amount which is five times higher than in 2015, the percentage of foreign participation is still below 3%, which implies serious underinvestment on the part of global institutions.7

If fully included in the three major global fixed income indices, Chinese onshore bonds are expected to attract around $ 320 billion in aggregate inflows.8 In anticipation of full inclusion to come, it is considered a good time for investors to tap into China’s promising onshore bond market.

Ms. Gao Ming, President and Executive Director of ICBC (Asia), said, “The 14th National Five-Year Plan has strengthened Hong Kong’s position as an international financial center as well as a global offshore RMB business center. As a HKEX listed RMB bond ETF, 3199.HK is helping to further enrich the RMB product line in Hong Kong to meet international investor demand for RMB asset allocation. ICBC (Asia) will continue to use the competitiveness of its services in the field of cross-border financing to further strengthen the status of the RMB as a major international reserve asset and promote the development of high-quality capital markets on the continent and in Hong Kong. ”

Ms. Zhang Yue, Acting Managing Director of ICBC AM (Global), said, “The relaunch of 3199.HK offers global investors a very efficient and inexpensive tool to allocate Chinese government bonds and strategic bank bonds. , so as to take advantage of China’s economic growth and capital market development. As the overseas asset management platform of ICBC Group, we plan to partner with CSOP to continuously provide investment management solutions for high quality Chinese assets.

Ji Zhuang, Head of APAC Indices at Bloomberg, said, “Since the inclusion of China’s Treasury and Strategic Bank Bonds in the Global Aggregate Index, investors have shown a solid and growing appetite for these stocks which represent more. of 85% of total foreign ownership. in Chinese onshore bonds. With the 3199.HK ETF, global investors can exploit another avenue to seize the Chinese bond investment opportunity. We have enjoyed CSOP’s partnership for nearly a decade and look forward to deepening our collaboration by delivering our best of index solutions and thought leadership in the space. ”

CSOP is confident and happy with the relaunch of 3199.HK. Ms. Ding Chen, CEO of CSOP, comments, “We are very happy to partner again with ICBC (Asia) and ICBC AM (Global) to relaunch 3199.HK in Hong Kong after our cooperation on successful bond listing. State ICBC CSOP FTSE Chinses. Index ETF (CYB / CYC) on SGX. We strongly believe that with the support of ICBC AM (Global), we will take 83199.HK/3199.HK to a new level, allowing more investors to benefit from investments in the Chinese bond market. Onshore state.

About CSOP Asset Management Limited

CSOP Asset Management Limited (“CSOP”) was founded in 2008 as the first offshore asset manager established by a regulated asset management company in China. With a focus on investing in China, CSOP manages public and private funds, and provides investment advisory services to Asian and global investors. In addition, CSOP is best known as a leader in ETFs in Asia. As of August 31, 2021, CSOP had more than $ 10.2 billion in assets under management.

IMPORTANT: Investing involves risks. The investment value may increase or decrease. The information on past performance presented is not indicative of future performance. Investors should refer to the Prospectus and the Key Product Information Statement for further details, including product characteristics and risk factors. Investors should not rely solely on this document when making investment decisions.

Disclosure of product risks:

CSOP Bloomberg China Treasury + Policy Bank Bond Index ETF

  • CSOP Bloomberg China Treasury + Policy Bank Bond Index ETF (“the Fund”) is a “physical” ETF, which means that it will invest directly in fixed rate bonds denominated and settled in RMB issued by the Ministry of Finance of the PRC, China Development Bank, Agricultural Development Bank of China or Export and Import Bank of China and distributed on the Chinese mainland (the “Treasury Bills and Strategic Bank Bonds”) by the through the manager’s status as a Qualified Foreign Investor (“QFI”), and / or through the Mutual Bond Market Access Initiative between Hong Kong and Mainland China (“Bond Connect”).

  • Since the Sub-Fund invests in fixed income securities, the Sub-Fund is subject to interest rate risk. Interest rate risk is the risk that the value of the Sub-Fund’s portfolio will fall due to rising interest rates. The interest rate risk is generally lower for short-term investments and higher for long-term investments.

  • The Sub-Fund is subject to liquidity risk as regular and continuous trading activity and an active secondary market for bonds are not guaranteed. The spread between the bid and the bid price of bonds can be large, so the Sub-Fund may incur significant trading and realization costs and may incur losses as a result. There can be no assurance that investors will be able to dispose of their Units at prices corresponding to the amounts and at the times they wish.

Please note that the investment risks listed above are not exhaustive and investors should read the Prospectus and the Key Product Information Statement in detail before making any investment decision.


This document has not been reviewed by the Securities and Futures Commission.

Issuer: CSOP Asset Management Limited

Please refer to the offering documents for the disclaimer of the index provider.

1 Source: Bloomberg, as of November 15, 2021

2 Source: CSOP Asset Management Limited, as of August 31, 2021

3 Source: FTSE Russell

4 Source: CSOP Asset Management Limited

5 Source: Bloomberg, as of August 17, 2021

6 Source: CCDC and Shanghai Clearing, in July 2021

7 Source: CCDC and Shanghai Clearing, in July 2021

8 Source: FTSE, Bloomberg, JPMorgan, UBS estimates as of September 7, 2020