China Asset Management (Hong Kong) Limited on Friday (May 28) completed the takeover of seven Hong Kong-listed exchange-traded funds (ETFs) from Canada’s BMO Global Asset Management. The ETFs have total assets of HK$4.35 billion (US$560.5 million).

The seven ETFs have been included in the list of approved Index-Tracking Collective Investment Schemes (ITCIS). With the takeover, ChinaAMC (HK) is now the second largest ETF provider in terms of the number of ETFs included in ITCIS, providing a more comprehensive product range for Mandatory Provident Fund trustees, the firm says.

And with the takeover of the BMO Nasdaq 100 ETF, ChinaAMC (HK) is now the largest and most comprehensive provider of Nasdaq-100 ETPs in Hong Kong, offering a full range of products including Nasdaq-100 2x leveraged product, Nasdaq-100 -2x inverse product, Nasdaq-100 -1x inverse product, and Nasdaq 100 ETF. The wide product range will allow investors to fully capture the investment opportunities amid the market volatility in the US stock market, according to the fund manager.

Mackenzie Investments, a renowned Canadian asset manager and also one of the major shareholders of China Asset Management Company Limited, will serve as investment adviser.

ChinaAMC (HK) chief executive officer Tian Gan says: “As a seasoned ETF provider, we have full confidence and commitment in developing our ETF business in Hong Kong. The takeover will create synergies and help us further diversify our product portfolio, and let Mackenzie Investments showcase their extensive capabilities. Meanwhile, this move deepens our cooperation with Nasdaq as ChinaAMC (HK) will manage six ETPs (exchange-traded products) that track indices provided by Nasdaq, making us the ETF issuer that uses the most number of indices provided by Nasdaq. With our deep understanding of investor appetite in Hong Kong and Asian market, ChinaAMC (HK) will leverage our competitive advantage and bring more innovative products for investors.”

Following the takeover, the seven ETFs will now be called ChinaAMC Asia USD Investment Grade Bond ETF, ChinaAMC NASDAQ 100 ETF, ChinaAMC MSCI Asia Pacific Real Estate ETF, ChinaAM Hong Banks ETF, ChinaAMC Asia High Dividend ETF, ChinaAMC MSCI Japan Hedged to USD ETF, and ChinaAMC MSCI Europe Quality Hedged to USD ETF.