In First Engagement with Solactive, Phillip Capital Launches First Hong Kong Listed ETF, Tracking Solactive Index Focusing on Hong Kong IPOs

The Initial Public Offering (IPO) is the first listing of a company’s shares on the stock market offering them to the public. Going public, amongst other aspects, makes it possible for firms to raise additional capital for numerous projects fueling their growth. Investors looking for companies that recently had their IPO, often seek high return potentials based on future growth prospects that might not have been reflected in valuations yet. Also, newly listed companies can generally be considered innovative, either being active in modern business sectors, or offering a disruptive approach to established industries. In this context, Solactive is pleased to announce that Phillip Capital Management (HK) LTD has launched the Phillip HK Newly Listed Equities Index ETF, tracking a Solactive index. The fund is the first engagement of the asset manager in the Hong Kong ETF market. At the same time, Hong Kong itself is one of the world’s leading IPO markets, and this ETF is the first of its kind to take advantage of this vibrant environment.

The Solactive Hong Kong Newly Listed Equities Index is a representation of securities listed on the Hong Kong stock exchange that recently had their IPO.

The ETF is listed on the main board of Hong Kong Stock Exchange (HKEX) under stock code 2835.HK.

Timo Pfeiffer, Chief Markets Officer at Solactive, says: “This IPO strategy offers investors the possibility of diversifying with newly listed companies in Hong Kong, that are in the very beginning of their public journey, with many opportunities to consider. We are delighted that Phillip Capital saw the potential in this space and chose Solactive to launch this ETF, and we look forward to jointly expanding our footprints together in the APAC region.”

Jeffrey Lee, Chief Investment Officer of Phillip Capital Management (S) Ltd comments: “The Hong Kong market will continue to be a magnet for the listing of the next Tencent or Alibaba. Our ETF will offer exposure to the vibrant Hong Kong IPO market with myriad investment opportunities.”