HONG KONG--(BUSINESS WIRE)--CSOP Nikkei 225 Index ETF (3153.HK) will be listed on the Hong Kong Stock Exchange on January 31, 2024, making it the first Nikkei 225 Index ETF in Hong Kong. In order to track the performance of the Nikkei 225 Index , 3153.HK deploys a full replication strategy, with a listing price of about 78 Hong Kong dollars per unit, trading lot of 10, and management fee of 0.99% of the ETF’s net asset value per year. 3153.HK has received an initial investment of 13 million US dollars.
Nikkei 225 Index rose by 30% in 2023, making Japan the highest returning stock market among major global markets1. At the beginning of 2024, it surged above 34,000 points, setting a new high since March 1990 (the period of the asset price collapse)2. With the endorsement of Warren Buffett, the "Oracle of Omaha", Japan's economy breaking free from the deflation curse, and the implementation of "price-to-book ratio (PBR)" reform of the Tokyo Stock Exchange, the Japanese stock market is attracting more investors' attention than ever.
In April 2023, Buffett visited Japan for the first time in twelve years. His holding company, Berkshire Hathaway, increased its stake in Japan's five major trading companies to 7.4%, which is the company's largest investment outside the United States3. His visit triggered the "Buffett Effect", pivoted overseas investors’ focus on the Japanese stock market. In 2023, overseas investors net bought 6.3 trillion yen (about 43.39 billion US dollars) of Japanese stocks and stock futures, of which the net inflow of stocks reached 3.12 trillion yen, shattered the record of net selling for three consecutive years, and established a new high since the market bull triggered by Abenomics in 20134.
At the same time, the Japanese government stated in August 2023 that the 25-year fight against deflation may have reached an "inflection point". The core CPI for the whole year of 2023 increased 3.1% year-on-year, scoring a 41-year high5. In addition, the Tokyo Stock Exchange introduced a new regulation in March 2023 that requires listed companies with a long-term PBR below 1 to announce specific improvement plans to shore up shareholder returns. Specific suggestions include urging companies to buy back shares, increase dividends in the short term, and improve profitability in the long term.
CSOP Nikkei 225 Index ETF is the first ETF in Hong Kong tracking Nikkei 225 Index. This ETF provides a convenient and low-cost trading tool for Hong Kong investors interested in the Japanese market. Nikkei 225 Index includes the 225 most representative stocks listed on the Prime Market of the Tokyo Stock Exchange. The constituents are selected based on their liquidity in the market and sector balance, including but not limited to industries like technology, consumer goods, industrial materials, and capital goods. The index is a net total return index, which means that it reflects the reinvestment of dividends or distributions, after deduction of any withholding tax. The index is denominated and quoted in JPY.
Ms. Ding Chen, CEO of CSOP, is pleased to announce that the CSOP Nikkei 225 Index ETF will be listed on the Hong Kong Stock Exchange tomorrow. She comments: "As an ETF issuer trusted by investors in the APAC region, CSOP has always been committed to providing comprehensive and diversified investment products. At present, we manage 48 ETF and ETP products, asset classes across equity, fixed income, commodity futures, thematic investment, money market, and virtual assets. The first Nikkei 225 Index ETF listed in Hong Kong by us will further enrich our product line and provide investors with a flexible and transparent channel to invest in the Japan market."
CSOP is a leading ETF issuer in Hong Kong SAR, with a wide range of product offerings across equity, fixed income, leveraged and inverse, thematic, money market, and virtual assets. In 2023, 6 out of 10 of the most traded ETFs on the Hong Kong Stock Exchange are CSOP-issued products*. Innovation and leadership are deeply rooted in CSOP’s DNA as we strive to bring first-of-its-kind products to the market, educate investors about ETF trading, and never stop looking for ways to improve trading efficiencies.
CSOP’s commitment to cross-border initiatives and collaborations is unwavering. we are the only product issuer participating in all the ETF connectivity programs between mainland China and Hong Kong SAR, capturing an 89% market share of the aggregate southbound AUM**, as well as the first issuer to participate in the China – Singapore Cross-border ETF Link Scheme.
* Source: Daily average from 1 January 2023 to 30 September 2023, Bloomberg
** Source: As of 28 September 2023, 89% of southbound connect total AUM is from CSOP Hang Seng TECH Index ETF and CSOP Hang Seng Index ETF, CSOP
Disclaimer and Important Notices
CSOP Nikkei 225 Index ETF is authorized by the Securities and Futures Commission ("SFC") in Hong Kong. Such authorization does not imply any official recommendation by the SFC. This material is for general information only and do not constitute financial, professional, investment or any other kind of advice in any way and shall not be considered as an offer, solicitation, or recommendation to deal in any investment products. Investment involves risks. The value of the investment may fall as well as rise and investors may get back less than they invested. Past performance information presented is not indicative of future performance. Investors should refer to the Prospectus and the Product Key Facts Statement for further details, including product features and the full list of risk factors. Investors should not base on this material alone to make investment decisions. Investors should understand the nature and risks of the relevant investment products and make investment decisions based on their own financial situation, investment objectives and experiences, willingness and ability to bear risks and specific needs; and if necessary, should seek independent professional advice before making any investment decisions. CSOP makes no representation or warranty to the accuracy, completeness or timeliness of this material. This material 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. This material is prepared by CSOP and has not been reviewed by the SFC. Issuer: CSOP Asset Management Limited
Index Provider Disclaimer
The Nikkei Stock Average Index is a copyrighted material calculated in a methodology independently developed and created by Nikkei Inc. and Nikkei Inc. is the sole exclusive owner of the copyright and other intellectual property rights in the Nikkei Stock Average Index itself and the methodology to calculate the Nikkei Stock Average Index. The intellectual property and any other rights in the marks to indicate Nikkei and the Nikkei Stock Average Index shall be vested in Nikkei Inc.. Nikkei Inc. does not sponsor, support, sell or market the CSOP Nikkei 225 Index ETF. Nikkei Inc. has, besides granting the license to the Manager to use certain trademarks and to use the Nikkei Stock Average Index for the CSOP Nikkei 225 Index ETF, no connection with the CSOP Nikkei 225 Index ETF. The License Agreement between Nikkei Inc. and the Manager does not provide any rights to any third parties. The CSOP Nikkei 225 Index ETF is managed exclusively at the risk of the Manager and Nikkei Inc. shall assume no obligation or responsibility for its management and transactions of the CSOP Nikkei 225 Index ETF. Nikkei Inc. is not responsible for the accuracy and the calculation of the CSOP Nikkei 225 Index ETF or the data contained therein. Nikkei Inc. shall not have the obligation to continuously announce the Nikkei Stock Average Index and shall not be liable for any error, delay, interruption, suspension or cessation of announcement thereof. Nikkei Inc. shall have the right to change the description of the stocks included in the Nikkei Stock Average Index, the calculation methodology of the Nikkei Stock Average Index or any other details of the Nikkei Stock Average Index and shall have the right to suspend or cease the publication of the Nikkei Stock Average Index without owing any liability to the Manager or any other third party.
1 Source: Bloomberg, 12/30/2022 - 12/29/2023. Except for the Taiwan Stock Exchange Weighted Index (Bloomberg code: TWSE Index), all are net total return indices. Major representative indexes are H-Share-Hang Seng Index, A-Share-CSI300 Index, UK-FTSE 100 Index, Vietnam-FTSE Vietnam 30 Index, Saudi Arabia-FTSE Saudi Arabia Index, Australia-S&P/ASX 200 Index, APAC-FTSE Asia Pacific Low Carbon Select Index, France-CAC 40 Index, German-DAX Index, India-Nifty50 Index, Euro Zone-Euro STOXX Index, South Korea-KOSPI Index, US-S&P 500 Index, Taiwan China-TWSE Index, Japan-Nikkei 225 Index.
2 Source: Bloomberg.
3 Source: Nikkei news.
4 Source: Japan Exchange Group, Reuters.
5 Source: Bloomberg. Core CPI is the consumer price index excluding fresh food.