According to Zhītōng Finance App, Hang Seng Investment Management and China Merchants Securities Asset Management (Hong Kong) have cooperated to launch the Hang Seng China Merchants Bloomberg US Treasury 1-3 Year Index ETF (03436) and the Hang Seng China Merchants Bloomberg US Treasury 7-10 Year Index ETF (03435). These two joint brand ETFs also provide non-listed category fund units for distribution, including investors in the Greater Bay Area who can invest through the cross-border wealth management program.

It is reported that the two new ETFs will be listed on the Hong Kong Stock Exchange (00388) next Monday (16th), with an issue price of HKD 78 per unit. The trading quantity per lot is 10 fund units, and the entrance fee is HKD 780. The estimated annual recurring expense ratio for non-listed category fund units is 0.66%.

Li Peishan, director and CEO of Hang Seng Investment, said that US Treasury bonds are generally considered low-risk assets, and these two ETFs provide options for short-term and medium to long-term investment, allowing investors to flexibly adjust their investment portfolios according to their risk tolerance and financial goals. She mentioned that since the implementation of the Cross-Boundary Wealth Management Scheme 2.0, the total inflow of funds from the mainland to Hong Kong from March to July this year amounted to CNY 68.2 billion, more than 24 times the same period last year.

Zhou Geng, head and executive director of China Merchants Securities Asset Management (Hong Kong), said that against the backdrop of gradual global inflation easing and slow decline in US interest rates from high levels, the 1-3 year short-term US Treasury bond ETF can provide relatively stable returns for clients, while the 7-10 year medium to long-term US Treasury bond ETF offers opportunities to capture returns in market fluctuations.