CSOP US Dollar Money Market ETF (stock code: 9096/ 3096) to list on Hong Kong Stock Exchange - the first USD Money Market ETF in Hong Kong

HONG KONG, Jan. 25, 2019 /PRNewswire-PRWeb/ -- CSOP US Dollar Money Market ETF (stock code: 9096/ 3096) to list on Hong Kong Stock Exchange – the first USD Money Market ETF in Hong Kong

CSOP Asset Management Limited ("CSOP") will bring the first Hong Kong listed USD money market ETF – CSOP US Dollar Money Market ETF (9096.HK/ 3096.HK) (thereafter referred as "CSOP USD MM ETF") on Jan 25, 2019 to Hong Kong and Asian investors. The launch of CSOP USD MM ETF aims to enhance Hong Kong's USD cash management market product offerings and in turn to strengthen Hong Kong's position as a major offshore USD center. Benchmarked with the FTSE 3-Month US Dollar Eurodeposit Index, CSOP USD MM ETF will invest majority of the assets in USD denominated short-term deposits and money market instruments. Designed as a flexible cash management tool for both institutional investors and retail investors, this ETF can be easily accessed by primary market creation and secondary market trading. With management fee (including trustee fee) of 0.35% per annum, CSOP USD MM ETF is expected to achieve around 2.25% annualized return after management fees*.

To minimize the dilution to NAV induced by trading related fees, the trading lot size is formulated at 100 units with initial price of USD 1000 per share, meaning the minimal investment is around USD 100,000. CSOP USD MM ETF has already attracted around USD 50 million initial investments from institutional investors and expects more to come in the following days.

*The return is indicative and for reference only. It is calculated based on the benchmark performance as of Dec 30, 2018 minus fund fees without considering trading related costs. As a major global financial hub, Hong Kong is not only the global offshore RMB center but also known as a major USD offshore center because of its enormous USD deposits size. As at the end of 2018, total deposits size in Hong Kong reached HKD 12 trillion with demand deposits of HKD 1.5 trillion. Among all deposits in Hong Kong, USD deposits accounted for around 40% to as high as USD 600 billion (equivalent to approximately HKD 4.7 trillion) and demand deposits accumulated to above USD 90 billion. (Source: HKMA, as at Nov 30, 2018). The USD money market fund size was only about USD 1.6 billion which was significantly unmatched the USD deposits size in Hong Kong, and majority of the size came from UCITS funds domiciled in Europe rather than in Hong Kong. (Source: Bloomberg, as of Dec 30, 2018). Besides the limited size, the USD money market funds in Hong Kong also concern investors with the lack of transparency and liquidity. Introducing more flexible USD cash management investment tools may be considered as a good solution to strengthen Hong Kong's offshore USD center position. Unlike the traditional USD money market funds in Hong Kong which have no timely and sufficient disclosure of their holdings and require two days for transition, CSOP USD MM ETF eased investors' concerns by disclosing the daily holdings and enabling the intraday liquidity for secondary market trading. "As USD is on rate hike trajectory, we think it is also a good timing to launch the CSOP USD MM ETF."

Optimistic to the USD rate prospects, Mr. Louis Lu, Portfolio Manager of CSOP USD MM ETF said, "We expect there will be at least 1-2 times rate hike in 2019, and the interest yield of USD will reach 2.75% to 3% according to our internal research. For the regional investors who would like to gain interest yield of USD cash without worrying about liquidity, CSOP USD MM ETF would be a good investment tool for them."

Before the introduction of the CSOP USD MM ETF, CSOP has already brought its first money market ETF – CSOP Hong Kong Dollar Money Market ETF (3053.HK/83053.HK) (thereafter referred as "CSOP HKD MM ETF") to the Hong Kong market on July 18, 2018, as its first step to fill the market gap of money market ETF in Hong Kong. The launch of CSOP HKD MM ETF was proved very successful by its fast growing AUM which quickly accumulated to more than HKD 3.3billion within 6 months since inception, marking one of the largest fund inflows among all ETFs in Hong Kong in 2018. (Source: CSOP, as of Dec 30, 2018) The huge success achieved by CSOP HKD MM ETF strengthens CSOP's confidence of bringing USD money market ETF to Hong Kong investors.

Different from CSOP HKD MM ETF which is designed to mainly target Hong Kong local investors, CSOP USD MM ETF aims to cover a more broader base of regional investors such as high net worth individuals, insurers, corporate treasurers, funds, endowments who hold a lot of USD denominated assets or cashes parked in Hong Kong. "Launch of the CSOP USD MM ETF has pushed forward our plan to enrich Hong Kong's money market fund offerings. As a responsible and committed Chinese background asset manager rooted in Hong Kong, our goal is not only to bridge Hong Kong to China mainland market, but also broaden the connect between Hong Kong and the global market so that we can have a grander stage to play. By introducing the CSOP USD MM ETF, we believe more USD will flow into Hong Kong and Hong Kong's USD offshore center position can be greatly strengthened. Besides USD, Hong Kong is also the global center for some other major global currencies, we believe there is still a lot of space for us to explore in future." concluded by Melody He, Managing Director, Head of Sales and Product Strategy of CSOP.

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For the terms and conditions of the ETF, please refer to the respective offering documents.

About CSOP Asset Management Limited
CSOP Asset Management Limited ("CSOP") was founded in 2008 as the first offshore asset manager set up by a regulated asset management company in China. With a dedicated focus on China investing, CSOP manages public and private funds, as well as providing investment advisory services to Asian and global investors. Managing the largest RMB equity and fixed income ETF listed in offshore China, CSOP is the largest RMB Qualified Foreign Institutional Investor ("RQFII") asset manager globally. As of 30 Dec 2018, CSOP had US$ 5.6 billion in assets under management.

For further information, please contact

Issuer: CSOP Asset Management Limited
Larry Wang / 3406 5613 / [email protected]

This material has not been reviewed by the Securities and Futures Commission.
Issuer: CSOP Asset Management Limited

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The CSOP US Dollar Money Market ETF (the "Fund") has been developed solely by CSOP Asset Management Limited. The Fund is not in any way connected to or sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the "LSE Group"). FTSE Russell is a trading name of certain of the LSE Group companies.

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