Bosera Asset Management Launches ETF Tracking Chinese State-Owned Companies’ High Dividend Yields

The Hong Kong funds business of China’s Bosera Asset Management has introduced a new exchange-traded fund that follows an index of major Chinese companies owned by the central government on the Hong Kong stock exchange. The Bosera China Reform Hong Kong Central-SOEs High Dividend Yield Index ETF is managed by Bosera Asset Management International, a subsidiary of Bosera AM and China Merchants Fund Management. This ETF tracks the CSI China Reform Hong Kong Connect Central-SOEs High Dividend Yield Index, which consists of centrally owned state-owned enterprises with stable dividends and high yields listed in Hong Kong, eligible for trading via the Hong Kong-mainland stock connect scheme.

In mainland China, three ETFs from China Southern Asset Management, GF Fund Management, and Invesco Great Wall Fund Management launched on the same day, following the same index. These ETFs have each raised over Rmb1.1bn (US$151mn) and have listed state-owned China Reform Holdings as one of the significant investors. The launch of these ETFs reflects China’s efforts to support stock prices of Hong Kong-listed state-owned companies. Stocks with high-dividend yields have gained popularity as Chinese investors seek stable returns amid a turbulent stock market, leading to increased competition among similar products in the market.

The debut of the Bosera ETF and its counterparts in mainland China signals a significant step in connecting central state-owned enterprises with international capital and promoting linkages between domestic and international markets, according to Christopher Hui, the secretary for Financial Services and the Treasury of Hong Kong. The move underscores the growing demand among investors for stable investment options amid market uncertainties.