CSOP Appointed as Investment Manager for BCT (Pro) Greater China Equity Fund, Helping HK MPF Investors Capture Greater China Growth Opportunities

HONG KONG–(BUSINESS WIRE)–CSOP Asset Management Limited (CSOP) is pleased to announce its appointment as the Investment Manager for BCT (Pro) Greater China Equity Fund, a Constituent Fund (CF) under the BCT (MPF) Pro Choice (Master Trust Scheme), effective 20th April 2023. CSOP is a leading asset manager in Asia and the second largest ETF issuer in Hong Kong¹, whereas BCT is a major pension product provider and one of the largest trust companies in Hong Kong. This collaborative endeavor enriches the investment prospects available to members of the MPF scheme.

Under the new arrangement, BCT (Pro) Greater China Equity Fund has transitioned from a passive allocation between two Index-Tracking Collective Investment Schemes (ITCIS) to a dynamic allocation across a pool of ITCIS that provides exposure to Greater China equity markets. CSOP actively adjusts the exposure to different Greater China markets comprising stocks listed in Hong Kong, Taiwan, Shanghai (A Shares and B Shares), Shenzhen (A Shares and B Shares) and offshore exchanges based on prevailing market conditions and its view on the different markets’ outlook and investment opportunities available.

As the new investment manager of BCT (Pro) Greater China Equity Fund, Andy Lau of CSOP Quantitative Investment is optimistic about the Greater China market. “While the first quarter of 2023 showed positive economic data, the subsequent months of April and May have been disappointing, adversely impacting the China recovery narrative. The equity markets, both onshore and offshore, have underperformed compared to global markets, reflecting a notable lack of investor confidence. However, service consumption remains strong, while global demand for goods is weak, signaling an imbalance in the global economy. Looking ahead, we anticipate the introduction of stimulus measures, such as cuts in the Loan Prime Rate (LPR) and expanding fiscal spending, to boost economic growth. Positive developments in geopolitical issues, including renewed talks between the United States and China, are improving sentiment.”

In regard to investment style, Andy Lau remarks, “We adopt a risk-on approach, favoring an overweight in equity. In the onshore A-share market, we see potential in policy-friendly sectors like state-owned enterprises (SOEs) and the digital economy. High-end manufacturing sectors focusing on technological self-reliance also offer opportunities. We are optimistic about the offshore Chinese equities, with a focus on technology and consumption sectors, in particular the industry leaders which are listed in Hong Kong. Strong Q2 2023 estimates, recovering earnings expectations, and support for private economy development contribute to their robust fundamentals. As sentiment improves, valuation pressure may ease, and therefore both China onshore and offshore markets are poised to benefit from this. Furthermore, our positive outlook extends to the broader Greater China market, which has demonstrated strong performance during the first half of the year. This is attributed to the soaring demand for chips and related electronic components, driven by the ever-expanding landscape of artificial intelligence technology.”

BCT Group’s Managing Director and CEO, Ms. Jamie Lee says, “We are delighted to welcome CSOP as our new partner. Having deeply rooted in Hong Kong for almost 25 years, BCT has all along adopted an open architecture fund platform by working with numerous well-regarded global investment management companies. With CSOP on board, we will create more values for our MPF members by leveraging their expertise in the ETF market. CSOP’s complimentary experience is significant in helping us to build stronger investment portfolios for our MPF members, and we are convinced that this partnership will help BCT further solidify our leading position in Hong Kong pension industry.”

CSOP Asset Management’s CEO, Ms. Ding Chen comments, “We are very excited to take on the role as CF Manager for the BCT (Pro) Greater China Equity Fund. In recent years we have witnessed an increased usage of ETF by asset managers in Asia as a portfolio allocation tool, and with the number of new ETF products coming to the market, we feel encouraged that ETF will become an even more popular asset allocation tool for MPF products. CSOP has built its roots in Hong Kong over the last 15 years, and we are ready to provide more investment solutions to MPF members through different channels. We thank BCT for entrusting CSOP with this mandate, and look forward to building a fruitful relationship with BCT and contributing to HK’s MPF market.”

About CSOP

CSOP Asset Management (“CSOP”) is a leading ETF issuer in Asia, the second largest in Hong Kong^#. Founded in 2008, CSOP was the first offshore asset manager set up by a Chinese asset management company. Dedicated to providing best in class investment solutions, CSOP serves institutional and retail clients with a diversified offering of index-tracking exchange traded funds/products, actively managed mutual funds, and investment advisory services, covering strategies from equity and fixed income products to money market and quantitative funds.

^# Bloomberg, as of July 2023, excluding SPDR Gold Trust

Disclaimer and Important Notices

This information is intended for general information purposes only. This information does not constitute any investment advice, advertisement or promotion of any investment products or any services, nor should it be construed as an offer, solicitation of offer, invitation, or recommendation to buy or sell any securities, funds, or any other financial instruments or enter into any transaction in any jurisdiction or country. This information has been prepared without regard to the individual investment objectives, financial position or special requirements. CSOP Asset Management Limited (“CSOP”) which prepared this information believes that content in this information is based upon sources that are believed to be accurate, complete and reliable. However, CSOP does not warrant the accuracy, reliability, timeliness, completeness or reasonableness and CSOP shall not be liable for any loss, damage or expense incurred directly or indirectly as a result of the use of and/or reliance upon the whole or any part of the contents in this information. This information may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections, forecasts, and estimates of yields or returns. The opinions expressed in this information only reflect the judgment of CSOP on the date of preparation of the material, and may be changed at any time due to subsequent changes in circumstances without prior notice. The provision of this information shall not be deemed as constituting any offer, acceptance, or promise of any further contract or amendment to any contract. This information is not directed to, intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution, availability or use would be contrary to local law or regulations, or which would subject CSOP to any registration or licensing or other requirement, or penalty for contravention of such requirements within such jurisdiction.

Investment involves risk. Future performance and the capital value of the investment products are not guaranteed. Past performance figures are not indicative of future performance. The value of investment products may rise as well as fall. We recommend investors obtain and carefully read the relevant product documents / offering documents for detailed information (including risk factors) before investing. Investors should not make any investment decision based solely on this information. Investors are advised to seek independent professional advice before making any investments. This information has not been reviewed by the China Securities Regulatory Commission or the Securities and Futures Commission. This information is prepared by CSOP, all copyrights related to this information are owned by CSOP. This information (and any part of the contents in this information) should not be copied, reproduced, distributed, or transmitted to any parties without the written consent of CSOP.

__________________

¹ Bloomberg, as of July 2023, excluding SPDR Gold Trust

Contacts

For further information, please contact

CSOP Asset Management Limited

Larry Wang / 3406 5613 / larry.wang@csopasset.com
Tina Shu / 3406 5675 / tina.shu@csopasset.com