Asia ETF Roundup (Industry) – September 2021

MSCI to Reclassify Pakistan Indexes from Emerging Markets to Frontier Markets

On 24 September, MSCI announced it would reclassify the MSCI Pakistan Indexes from Emerging Markets to Frontier Markets. MSCI stated that Pakistan no longer meets the standards for size and liquidity to be eligible for its emerging markets classification. The adjustment will coincide with the firm’s November 2021 Semi-Annual Index Review. According to the announcement, the adjustment will lead to the inclusion of four securities with an estimated index weight of 1.90% in the MSCI Frontier Markets Index.  The announcement can be viewed here.  

Chinese Equity ETF Watch – Hong Kong-Domiciled Onshore Chinese Equity ETFs See Estimated Net Inflows of USD 0.1 billion; Major US-Domiciled ETFs See Estimated Net Inflows of USD 1.2 billion

• Hong Kong-domiciled ETFs in the China Equity Category saw estimated net outflows totalling USD 67 million in September. This was primarily driven by outflow from the Hang Seng China Enterprises ETF (02828), which we estimate at USD 43 million.
• Hong Kong-domiciled ETFs in the China Equity - A-Shares Category saw estimated net inflows of USD 145 million in September. Flows favoured iShares FTSE China A50 ETF (82823/02823) and CSOP FTSE China A50 ETF (82822/02822) which recorded net inflows estimated at USD 61 million and USD 49 million, respectively.
• For the year-to-date through September 2021, Hong Kong-domiciled ETFs in the China Equity Category have seen estimated outflows of USD 78 million while Hong Kong-domiciled ETFs in the China Equity – A-Shares Category have experienced estimated outflows of USD 41million.
• In the U.S. in September, we estimated total net inflows of USD 0.4 billion to the iShares China Large-Cap ETF (FXI) and the iShares MSCI China ETF (MCHI). The Xtrackers Harvest CSI 300 China A ETF (ASHR) saw estimated net inflows of USD 0.1 billion while the KraneShares CSI China Internet ETF (KWEB) saw estimated net inflows of USD 0.6 billion.
• For the year-to-date through September, the KraneShares CSI China Internet ETF (KWEB) has seen estimated net inflows of USD 5.9 billion.

New Launches and Listings

China: 18 ETF New Listings; 3 Delisting

• Chinese ETF providers listed 11 new ETFs on the Shanghai Stock Exchange and 7 new ETFs on the Shenzhen Stock Exchange in September. These include 15 thematic/sector ETFs, 2 ETFs tracking broad market indices and 1 ETF tracking an ESG index.
• 2 ETFs were delisted from the Shanghai Stock Exchange and 1 ETF was delisted from the Shenzhen Stock Exchange. These include 1 dividend ETF, 1 thematic ETF and 1 strategic-beta ETF.
• Including the above listings and de-listings, the total number of ETFs in China stands at 571 (195 ETFs on the SZSE, 396 ETFs on the SSE).

India: 4 ETF New Listings

• Indian ETF providers listed 3 new sector ETFs and 1 ETF tracking the S&P 500 Top 50 Index on the Indian exchanges.

South Korea: 6 ETF New Listings; 1 Delisting

• Korean ETF providers listed 6 ETFs on the Korea Exchange. These include 4 thematic ETFs, 1 ETF tracking an ESG Index and 1 active ETF.
• A dividend ETF had its last trading day on 23 September.
• Including the above listings and delisting, the total number of ETFs in Korea stood at 507 at month end.

Taiwan: 1 New ETF Listing; 1 Delisting

• CTBC Investments listed 1 thematic ETF on the Taiwan Stock Exchange.
• A bond ETF had its last trading day on 9 September on the Taipei Exchange.
• Including the above listings and delisting, the total number of ETFs in Taiwan stands at 219, of which 95 are bond ETFs.

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

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