BlackRock's exchange-traded funds arm will list six international equity products next week, but does not intend to launch leveraged and inverse ETFs in Hong Kong or elsewhere.
iShares will launch its new MSCI-linked A-share exchange-traded fund at a time of negative sentiment on Chinese equities and into an already crowded space.
Strong support for Ucits ETFs has been identified as a key trend in the industry. In the last three years, flows from Asian investors into Ucits ETFs have grown from $100 million to $3 billion.
With $11 billion having left A-share exchange-traded funds since September, industry players say some of it has shifted to the Shanghai-Hong Kong cross-border trading scheme.
The asset manager has named a trio of heads for its exchange-traded funds businesses in Asia; they are transfers from Copenhagen, London and New York.
Susan Chan has taken up the role in addition to her position as head of iShares’ Asia capital markets team. Jane Leung, the previous incumbent, is relocating to the US for a new role with the firm.
The HK subsidiary is set to list offshore renminbi ETFs in Hong Kong and New York and is in talks with global partners. It is also seeking to double its staff in Hong Kong to 40.
Asian institutions are shunning fixed-income ETFs due to low liquidity and lack of product choice, hampering industry growth. Recent market volatility has exacerbated the situation.
Having won regulatory approval on Friday, the US asset manager will be the first to list a dim-sum bond ETF in Hong Kong.
The Philippines is set to finalise rules for locally listed exchange-traded funds soon, and industry players are hoping for domestic and foreign investor buy-in.
BlackRock's exchange-traded funds arm has transferred an executive from London as an interim replacement for the departing regional chief operating officer.