Leading public fund institutions' Hong Kong subsidiaries intensively deploy cross-market ETFs

Author: Chang Xiaoyu

Recently, leading public fund institutions’ Hong Kong subsidiaries have been actively deploying cross-market ETFs.

On March 23, E Fund Asset Management (Hong Kong) Limited launched the E Fund Biopharmaceutical ETF (Exchange-Traded Fund) on the Hong Kong Stock Exchange. Previously, China Asset Management (Hong Kong) Limited and Harvest International Asset Management Limited (hereinafter “Harvest International”) have launched products focused on AI (Artificial Intelligence) and technology sectors. These products all adopt a dual-market allocation strategy connecting the Chinese Hong Kong and U.S. stock markets, attracting market attention.

Specifically, the E Fund Biopharmaceutical ETF is the world’s first and currently the only biopharmaceutical-themed ETF that covers both Hong Kong and U.S. stock markets. The product tracks the Solactive Biopharmaceutical Select Index, selecting 100 constituents from biopharmaceutical companies listed in Hong Kong and the U.S. As of March 5, 2026, 65% of the index constituents are from Hong Kong stocks and 35% from U.S. stocks.

Unlike traditional market-cap weighted indices, the Solactive Biopharmaceutical Select Index uses an equal-weighted methodology, resulting in highly diversified holdings. This design better aligns with the characteristics of the biopharmaceutical industry. Equal weighting helps increase exposure to “disruptive innovation” and effectively diversifies tail risks concentrated in single leading companies.

A relevant person from E Fund Asset Management (Hong Kong) told Securities Daily: “Biopharmaceuticals are a high-growth sector with both rigid consumer demand and innovative growth attributes. The global aging trend provides a long-term demand foundation for 10 to 20 years. With its scarce ‘Hong Kong and U.S. dual-market’ layout and scientific equal-weighting approach, the E Fund Biopharmaceutical ETF offers investors an efficient channel to allocate core global biopharmaceutical assets.”

On March 18, China Asset Management (Hong Kong) Limited launched the China-Hong Kong-U.S. Artificial Intelligence ETF on the Hong Kong Stock Exchange. The fund closely tracks the Solactive Hong Kong-U.S. Artificial Intelligence 50 Select Index, selecting up to 50 leading AI companies listed in Hong Kong and the U.S. The index employs a scientific regional weight distribution (62% Hong Kong, 38% U.S.) and sets strict individual stock weight limits (8% for Hong Kong stocks, 5% for U.S. stocks) to effectively diversify risks from single markets and individual stocks.

The China-Hong Kong-U.S. Artificial Intelligence ETF’s holdings deeply cover three key segments of the AI industry chain: at the hardware foundation level, focusing on essential AI infrastructure benefiting from large capital expenditures by global tech giants; at the software core level, targeting the critical bridge connecting computing power and applications, with high technical barriers and strong moat; at the application vitality level, focusing on AI applications with explosive growth potential to fully explore commercial value and monetization.

Blue Guojian, ETF Investment Director at China Asset Management (Hong Kong), stated: “Through the China-Hong Kong-U.S. Artificial Intelligence ETF, investors can easily participate in the development achievements of AI industries in China and the U.S., capturing long-term opportunities brought by technological innovation.”

On March 6, Harvest International announced the listing of the Harvest China-U.S. Technology 50 ETF on the Hong Kong Stock Exchange. The fund tracks the Solactive Harvest Tiger G2 Tech 50 Select Index, comprising 50 of the most influential global technology companies, including 30 leading Chinese tech firms listed in Hong Kong and 20 global tech giants listed in the U.S., forming a complementary pattern of “U.S. core technology strength + Hong Kong tech application vitality.”

Regarding regional weight distribution, the index maintains approximately 62% Hong Kong stocks and 38% U.S. stocks, with clear weight limits for individual constituents (8% for Hong Kong stocks, 5% for U.S. stocks) during rebalancing, aiming to balance growth potential and risk diversification.

From an industry chain perspective, the Harvest China-U.S. Technology 50 ETF’s portfolio comprehensively covers the core sectors of this tech wave: in AI computing power and infrastructure, deploying U.S. cloud computing giants and key Hong Kong domestic chip companies; in internet platforms and software ecosystems, gathering global tech giants and representative Chinese platform companies; in end-user applications and consumer electronics, focusing on core companies benefiting from AI hardware upgrades; in intelligent manufacturing and new energy, including leaders in embodied intelligence and autonomous driving.

Chen Zhixin, CEO of Harvest International, said: “Currently, AI is driving a new round of global technological cycles, with a clear pattern of complementary advantages between China and the U.S. The Harvest China-U.S. Technology 50 ETF aims to provide investors with an efficient tool for a one-stop layout of core Chinese and U.S. technology assets.”