A50 since the beginning of the year up to 54% into a a-share rise and fall leading indicators

The Hong Kong-listed A50 China Fund (2823.HK) has risen 54% per cent since the beginning of the year, higher than the Hang Seng index and the Shanghai Composite Index.　　Experts believe that the Hong Kong market linked to the mainland index ETF funds of the hot trend, to some extent, become a a-share a leading indicator of ups and downs. The recent Hong Kong market for a A-share index, the ETF fund tracking A-share indices has become increasingly popular, such as the A50 China Fund (2823.HK) daily magnification, June 4 the same day to reach the recent highs.　　At the same time, the fund's market prices also rose, from the beginning of the year's share of HK $8.35 rose to HK $12.8, a rise of 54%, higher than the same period of the Hang Seng Index and Shanghai index.　　Bai, vice president of China Bank's International Research department, told the Chinese Securities News reporter that ETF funds linked to the mainland index have sparked investment enthusiasm in Hong Kong because of the current lack of a more convenient channel for overseas investors to invest in a-shares and the increasing risk-control perceptions of retail investors.　　He also pointed out that although the Hong Kong listed with the mainland index linked to the two index ETF failed to fully reflect the status of the A-share market, but to some extent, as a leading indicator of the ups and downs. or the mainland Index ETF issue hot because of the investment boom in Hong Kong of ETFs linked to a-share, many institutions are targeting business opportunities to continue to launch similar ETF products. For example, CICC recently announced that will be listed in Hong Kong in four months Shenzhen 100ETF, and Hong Kong Hang Seng Index services company also plans to launch a-share index fund in the second half of this year, in order to compete for the city often "it is expected that the new listing of ETFs also difficult to shake the status of A50 China fund, after all, it , the product is also ripe some.　　Bai said that while the ensuing mainland index ETF would partly share the market, it could further attract new money.　　He said that because the funds can buy the mainland index ETF to show bullish on the mainland stock market, so the ETF funds to some extent also has the meaning of a A-share index, March large inflows A50 China fund is a good example.　　The risk of indirect investments in a shares is in the hot pursuit of ETFs, and the Morningstar (Asia) Senior research analyst, Gan Xingting, warned investors that while the average ETF fund was invested in real stocks, it would invest in derivatives and could face several risks. Gan Xingting said that, in A50, for example, it is not a direct buy-a-share, but through a derivative called caaps ("A-shares Access Products") indirect investment in A shares. Caaps issuer to buy a number of a shares through the QFII quota, and each ingredient a-shares to issue caaps, so A50 as long as the investment in Caaps, can curve investment A shares.　　Due to the issue of the amount of QFII, it also involves some uncertainties such as the issuance of funds. "For example, suppose that the new castIf a person wants to buy a A50, the fund must buy enough caaps to raise the fund. The problem is that if caaps issuers do not have enough qfii quotas, they cannot issue sufficient caaps.　　"Gan Xingting said. At the same time, due to the existence of different pricing currencies, the exchange problem also makes the fund have the error risk. "Take A50 as an example, the investment caaps in the United States dollar as the trading currency, caaps related assets are renminbi-denominated A shares, the A50 fund is the Hong Kong dollar as a trading currency, even excluding the exchange rate between the Hong Kong dollar and the dollar, the middle will be at least the exchange of RMB. "Moreover, because some ETFs are not held in real stocks and have derivatives, it is tempting to wonder what would happen if issuers were unlucky to fail." Su Weiwen, associate professor of finance at the Chinese University of Hong Kong, said that in terms of risk, if ETFs buy assets that are not positive stocks but derivatives, the risk is higher than the traditional funds.　　In particular, if the ETF issuer is unlucky enough to fail, the Lehman incident could be reproduced. Not only A50 exist these risks, analysts said, the BOC Prudential issued by the CSI 300, the use of synthetic methods, through derivative instruments to hold a shares, the same risk.