Hong Kong's Index fund continues to be hot

In the first quarter of this year, the funds of the Greater China region (the mainland, Hong Kong and Taiwan) were among the top of the various funds in Hong Kong, which led to a particularly hot investment in the index funds that tracked the region, with a total of 1.1 billion dollars flowing into the Greater China region in the first quarter.　　This has proved prescient, with only the Hang Seng Hong Kong index having risen more than 20% per cent since the first quarter, and the recent investment in the region's index funds continues to be a two-strong situation. The Greater China Index fund came at a time when shares in Greater China soared and the ranks of the index funds were rich, and this week, the first funds for the Greater China stock are on sale. This Taiwan main ingredient stocks of the Greater China Index Fund, sold by the Taiwan Polaris Financial Group, the index of investment will be fully close to the mainland, Hong Kong and Taiwan, the growth of the three markets, tracking index for the Russell Investment Company's "Greater China large share value index." According to the statistics provided by the Russell Investment Company (as at April 16), a total of 129 stocks of the constituent stocks of the large stock value index of the Greater China, the proportion of Taiwan accounted for 41.54%, Taiwan 34.73%, mainland China 23.73%, the top ten constituent stocks ranked by Chinese oil,　　Changjiang Industrial, Hutchison Whampoa, CLP Holdings, China Telecom, South Asia Plastic, Hong Kong Electric Light, Taiwan chemical fiber, China Telecom, Sun Hung Kai property.　　The Greater China region, buoyed by China's market, will still be a hot issue for investment in 2009, especially the exponential-operation index fund, which has been seen as a more efficient product, said Lin Zhongyi, a fund manager at Polaris Greater China Value Index. According to Morningstar, 53 of the funds currently sold in Hong Kong for investments in Greater China have gained 53.19% per cent in the three months of the biggest gains.　　It is understood that there are a large group of fund companies eyeing the market, and three former JP Morgan Asset Management executives are launching a major Chinese hedge fund through a Hong kong-based start-up to capture investor demand for Asian equities and opportunities in the global financial crisis. After the successful release of the ETF market, the Global ETF Fund supplier Ishare Company launched four ETF products at the end of April, with 4 new ETFs emerging from the MSCI Asia Market index ETFs, the MSCI APEX 50 Index ETFs,　　The MSCI Asia medium stock index ETFs and the MSCI Asia Apex Small stock index ETFs began trading in HKEx at the end of April. The rush to launch the Asian concept of ETFs coincided with a surge in capital inflows.　　According to Citi's latest report, funds flowing into Asian offshore funds doubled to $1.6 billion a week last week, benefiting most from China's ETF fund, which last week accounted for 60% of the total inflows of funds to Asian funds, well above 19% per cent 6 weeks ago. From trading volume, trading volumes surged to three to four times times the usual trading volume at the end of April, when ETFs traded most recently in the Hong Kong market. Morgan Stanley China strategist Lou just said China's macro figures in the first quarter, especially in March, were so beautiful that it attracted a lot of money to enter Hong Kong, "the money was originally invested in the Asian market, especially China, but it was a cautious attitude." "He thinks that this kind of the two prosperous situation can last for how long, but also to see the domestic two quarters of data, if China's macro data can continue to surprise everyone, then the money will continue to heap." But if not, the money will flow elsewhere, even back to the American market.