Hong Kong launched its first exchange-traded fund (ETF) on Wednesday dedicated to listed companies with deep ties across the Chinese and Association of Southeast Asian Nations (ASEAN) markets, providing fresh opportunities for investors to participate in the Belt and Road Initiative’s (BRI) development.
The Galaxy Bosera MSCI China ASEAN Economic Linkage Select Index ETF, co-managed by Bosera Asset Management (International) and China Galaxy International Asset Management (Hong Kong), aims to mirror the performance of the MSCI China ASEAN Economic Linkage Select Index.
The benchmark blends two components that include certain securities from the MSCI Hong Kong Listed Southbound Index, as well as the MSCI AC ASEAN Index.
READ MORE: ASEAN offers new investment prospect
It selects Hong Kong-listed stocks eligible for southbound trading under the Stock Connect program and with strong economic exposure to Singapore, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam. Large- and mid-cap companies listed in five ASEAN countries with high exposure to the Chinese mainland and the Hong Kong Special Administrative region are also included.
“We’ve been witnessing that the unwavering trends in overseas expansion of Chinese enterprises continue to gain momentum, and China-ASEAN collaboration has entered a new era,” said Zhang Dong, president of Bosera Asset Management.
The ETF captures the industry synergies arising from Chinese enterprises going global, while achieving a strong alignment with investors' core demand for emerging markets, he added.
Wang Sheng, chairman of the China Galaxy Securities, said: “As the first equity ETF in Hong Kong focusing on fundamentally strong companies in both China and ASEAN, this product offers an innovative tool for domestic and international investors to participate in the BRI.”
He added that the ETF’s launch fully demonstrates Hong Kong’s pivotal role as an international financial center.
READ MORE: China, ASEAN pledge deeper collaboration
As of Dec 31, 2025, leading constituents of the MSCI Hong Kong Listed Southbound Index includes tech heavyweights Tencent, Alibaba and Xiaomi, as well as insurers like AIA Group and Ping An Insurance.
