Hang Seng Indexes Company has granted Yinhua Fund Management a licence to use the HSI SCHK Index as the underlying index for a newly launched exchange-traded fund.

The ETF was listed on the Shenzhen Stock Exchange on Friday (June 21), with initial assets under management totalling 213 million yuan (US$29.33 million).

The HSI SCHK Index aims to reflect the performance of Hang Seng Index constituents that are eligible under the Southbound Stock Connect. The index applies an industry-neutral strategy that aims to achieve the same industry distribution as the Hang Seng Index.

From December 29 2023 to June 5 2024, the HSI SCHK Index has recorded an impressive gain of 9.6%, which is similar to that of Hang Seng Index (8.1%), both outperforming the broad market by 1.9 and 0.4 percentage points respectively.

The new ETF is the first exchange-traded product tracking the HSI SCHK Index and the 117th linked to an index within the Hang Seng family of indexes. These products are listed across 12 stock exchanges globally.

As of May 31 2024, the AUM of all products that passively track the Hang Seng family of indexes totalled US$69 billion.