CMS Asset Management (HK) launched CMS Hang Seng Tech Index ETF (Stock Code: 3423.HK) to Capture Growth Opportunities for the Technology Enterprises in China

Important Risk Disclosures and Fund Information

CMS Hang Seng Tech Index ETF (the “Sub-Fund”) is a sub-fund of CMSAM(HK) Funds Series 1 OFC which is a public umbrella open-ended fund company established under Hong Kong law with variable capital with limited liability and segregated liability between sub-funds.

The Sub-Fund is a passively managed index tracking exchange traded fund.  It offers shares in both listed and unlisted classes.  The listed class is traded on The Stock Exchange of Hong Kong Limited.

The investment objective of the Sub-Fund is to provide investment results that, before deduction of fees and expenses, closely correspond to the performance of the Hang Seng TECH Index which represents the 30 largest technology companies listed in Hong Kong with high business exposure to selected technology themes.  The Sub-Fund is passively managed and the Manager will not have the discretion to adapt to market changes.  It is also subject to tracking error risk.

The Sub-Fund’s investments are concentrated in Hong Kong listed companies that are active in technology sector.  They are subject to concentration risks in Greater China region and companies with a technology theme.  The Sub-Fund’s investments are subject to risks relating to a relatively short operating history, higher volatility in price performance, intense competition, government intervention, rapid changes, loss of impairment of intellectual property rights, cyber security and different technology sectors.

Investors in shares of the listed and unlisted classes are subject to different pricing and dealing arrangements.  The net asset value per share in respect of the listed and unlisted classes may be different due to different fees and cost applicable to each class. The listed class of the Sub-Fund is subject to trading risks that its shares may trade at a substantial premium or discount to its net asset value and reliance on market makers risks. 

The Sub-Fund is also subject to equity market risk, securities lending transactions and early termination risk.

Distributions (if any) may be paid out of capital or effectively out of capital at the Manager’s discretion, which amount to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any such distributions may result in an immediate reduction in the net asset value per share of the Sub-Fund and will reduce the capital available for future investment.

Investment involves risks and your investment in the Sub-Fund may suffer losses.  You should not make investment decision on the basis of this material alone.  Please read the prospectus and the product key facts statement of the Sub-Fund for further details including the risk factors.

HONG KONG, April 1, 2025 /PRNewswire/ — CMS Asset Management (HK) Co., Limited (“CMS Asset Management (HK)” or the “Company”, a fully-owned subsidiary of China Merchants Securities International Company Limited) is pleased to announce that CMS Hang Seng Tech Index ETF (Stock Code: 3423.HK) was listed on The Stock Exchange of Hong Kong (the “HKEX”) [on 31 March]. CMS Hang Seng Tech Index ETF (Stock Code: 3423.HK) tracks the Hang Seng TECH Index, helping investors seize growth opportunities in China’s cutting-edge technology sector. CMS Hang Seng Tech Index ETF (Stock Code: 3423.HK) is listed at initial price of HKD10 per unit, with a board lot size of 10 shares, and a management fee of 0.70% (listed share); as of 31 March 2025, the initial AUM reached HKD 368 million.

The Hang Seng TECH Index covers the 30 largest technology companies listed in Hong Kong, including leading enterprises in the fields such as Internet, fintech, e-commerce and artificial intelligence. With China’s technology industry ushering in historic development opportunities, it has become an important indicator reflecting the development of China’s emerging technology industry since its launch in 2020.  CMS Hang Seng Tech Index ETF (Stock Code: 3423.HK) closely tracks the Hang Seng TECH Index, actively deploys in the core sectors such as artificial intelligence, semiconductors and new energy. It offers an investment solution with low-cost advantage in China’s technology stocks, helping investors share the benefits of China’s technology development.

Mr. Liu Bo, Chairman of China Merchants Securities International Company Limited, said: “CMS Asset Management (HK) is committed to creating investment returns for investors through its distinctive investment strategies, high-quality asset portfolios, professional management team and rigorous risk control system. Currently, the world is undergoing an unprecedented technological revolution. The launch of CMS Hang Seng Tech Index ETF (Stock Code: 3423.HK) aims to help investors seize investment opportunities in the China’s technology sector in a timely manner, sharing the growth of these innovative enterprises, and participate in the investment of China’s leading technology companies in a low-cost and high-efficiency way.

CMS Asset Management (HK) has focused on forward-looking positioning in the technology and innovation sector, continuously investing in the global technology industry and developing multiple innovative ETF products. With the launch of the Hang Seng TECH Index ETF, combined with the existing Pando CMS Innovation ETF (Stock Code: 3056.HK)^, the CMSAM(HK) has established the investment layout in the two major technology camps of China and U.S., possessing the capability to allocate high-quality global technology assets for investors.”

Mr. Zhou Geng, Chief Executive Officer of CMS Asset Management (HK) Co., Limited, said: “In recent years, the size of the passive index investment market has grown rapidly due to its low cost, high transparency and long-term outstanding performance, making ETFs increasingly favored by investors. The newly launched CMS Hang Seng Tech Index ETF (Stock Code: 3423.HK) further enriches the Company’s product line and provides investors with more diversified asset allocation options.  The CMS Hang Seng Tech Index ETF gathers the top 30 most representative leading technology enterprises listed in Hong Kong. Through the full industry chain service capability of CMS International’s ETF, it collaborates with numerous high-quality partners to ensure the ETF closely tracks the relevant index, providing investors with a more cost-effective investment method.”

Overview of Fund Information

About CMS Asset Management (HK) Co., Limited

CMS Asset Management (HK) Co., Limited is a wholly-owned subsidiary of China Merchants Securities International Company Limited, established in 2008, focusing on providing diversified asset management services to institutional and individual investors. Its managed fund products cover the fields such as equities, equity-bond hybrids, fixed income and cash management, with stable and good return performance.

Among them, two ETF products jointly managed by CMS Asset Management (HK) and Pando Finance Limited recently received three accolades: the Pando CMBI Innovation Thematic ETF (3056.HK) was awarded the “Bloomberg Businessweek TOP FUNDS 2024 – Technology Equity ETF One-Year Return Excellence Award” and the “2024 Offshore China Fund Awards – Most Innovative Product Award”; the Pando CMS Blockchain ETF (3112.HK) received the “Bloomberg Businessweek TOP FUNDS 2024 – Blockchain Technology Equity ETF One-Year Return Outstanding Award”.

For more information about the products of CMS Asset Management (HK), please visit the website at http://www.cmschina.com.hk/en/AM/FundProduct 

Notes：

^CMS Asset Management (HK) acts as the investment adviser, jointly managing the Fund with Pando Finance Limited.

Disclaimer

This document is issued by CMS Asset Management (HK) Co., Limited (“CMSAM(HK)”). The content shall not be changed or modified and the content shall not be used in any other manner unless with the prior written consent of CMSAM(HK). CMSAM(HK) reserves the right to change the content without notice.

This document is for informational and illustrative purposes only and should not be construed as legal, tax, investment or other advice. This document does not constitute an offer to sell, or the solicitation of an offer to buy, any securities of CMSAM(HK) Funds Series 1 OFC (the “Fund”) and its sub-fund, CMS Hang Seng Tech Index ETF (the “Sub-Fund”) or any other fund(s).  This document has not been reviewed by the SFC.

Investors should note that all investments involve risks (including the possibility of loss of the capital invested), prices of shares and income distributions payable, if any, may go up as well as down and past performance (if any) is not indicative of future performance. Investors should read the Prospectus (including the Product Key Facts Statement and the full text of the risk factors stated therein) in detail before making any investment decision, as well as seek separate, independent financial advice if required prior to making an investment in the Sub-Fund or any other fund(s) to assess the suitability, lawfulness and risks involved. The information contained herein does not have any regard to the specific investment objectives, financial situation or the particular needs of any person. Investors should consider the fees and charges involved.

SFC authorization is not a recommendation or endorsement of the Sub-Fund nor does it guarantee the commercial merits of the Sub-Fund or its performance. It does not mean the Sub-Fund is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.

CMSAM(HK) 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 document. This document is not legally binding. This document is not applicable in jurisdictions where the distribution of this document is restricted. The product is only available in jurisdictions where it can be lawfully provided. For index provider disclaimers, please refer to the offering documents of the relevant funds.