Asia ETF Roundup (Industry) – June 2021

MSCI Reclassifies Argentina to Standalone Markets from Emerging Markets

On 24 June, MSCI announced it will reclassify the MSCI Argentina index from Emerging Markets to Standalone Markets status. The change will be implemented in the November 2021 index review in a single step. “Prolonged severity of capital controls with no resolution is not in line with the Market Accessibility criteria of the MSCI Emerging Markets Index” was cited by MSCI as the key reason for the reclassification.

Chinese Equity ETF Watch – Hong Kong-Domiciled Offshore and Onshore ETFs See Small Net Flows; US-Domiciled ETFs See Estimated Net Inflows of USD 1.4 billion

• Hong Kong-domiciled ETFs in the China Equity Category saw a small net outflow, estimated at USD 0.15 billion in June. Net outflows from the Global X China Electric Vehicle and Battery ETF (02845/09845), estimated at USD 164 million, and the iShares Core MSCI China ETF, estimated at USD 81 million (02801), were partially offset by net inflows to the Hang Seng China Enterprises Index ETF (02828/82828), estimated at USD 120 million.
• Hong Kong-domiciled ETFs in the China Equity - A-Shares Category saw estimated net inflows of USD 0.1 billion in June, coming mainly from the iShares FTSE A50 China ETF (02823/82823) which recorded net inflows estimated at USD 73 million.
• In the first half of 2021, Hong Kong-domiciled ETFs in the China Equity Category have seen estimated year-to-date outflows of USD 495 million while Hong Kong-domiciled ETFs in the China Equity – A-Shares Category saw estimated year-to-date inflows of USD 123 million.
• In the U.S. in June, we estimated total net inflows of USD 0.3 billion from the iShares China Large-Cap ETF (FXI) and the iShares MSCI China ETF (MCHI). The Xtrackers Harvest CSI 300 China A ETF (ASHR) and the KraneShares CSI China Internet ETF (KWEB) each saw estimated net inflows of USD 0.1 billion and USD 0.5 billion, respectively.

New Launches and Listings

China: 23 New ETF Listings; 1 Delisting

• In June, Chinese ETF providers listed 23 new ETFs on the Shanghai Stock Exchange and the Shenzhen Stock Exchange. These include 21 thematic/sector ETFs and 2 ETFs tracking the Hang Seng Tech Index.
• CCB Principal CSI 800 ETF (515620) had its last trading day on 8 June.
• Including the above listings and delisting, the total number of ETFs in China stands at 488 (160 ETFs on the SZSE, 328 ETFs on the SSE).

Hong Kong: 1 ETF New Listing

• Hong Kong ETF providers listed 1 new thematic ETF and USD counters of 2 existing ETFs on the Hong Kong Exchange.
• These listings put the total number of ETFs listed in Hong Kong at 225 (147 ETFs and 78 multiple counters, including 26 leveraged/inverse products).

South Korea: 5 ETF New Listings

• Korean ETF providers listed 5 ETFs on the Korea Exchange. These include 4 thematic ETFs and 1 actively managed bond ETF.
• These listings put the total number of ETFs listed in South Korea at 485.

Taiwan: 1 ETF New Listings; 1 Delisting

• Fubon Asset Management listed 1 thematic ETF on the Taiwan Stock Exchange.
• The Fubon S&P 500 VIX Short-Term Futures ETF (00677U) had its last trading day on 3 June.
• These listings and delisting put the total number of ETFs listed in Taiwan at 218, of which 98 are bond ETFs.

ETFs Launched in June 2021 in the Asia ex-Japan Region

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