Clifford Chance Advised on Establishment and Listing of Hang Seng Stock Connect China A Low Carbon Index ETF

Clifford Chance Advised on Establishment and Listing of Hang Seng Stock Connect China A Low Carbon Index ETF

Clifford Chance, a prominent global law firm, provided legal counsel to Hang Seng Investment Management Limited (HSVM), the largest ETF manager in Hong Kong based on assets under management.

The legal support was related to the successful launch and listing of the Hang Seng Stock Connect China A Low Carbon Index ETF on the Hong Kong Stock Exchange (HKSE). This ETF is listed under the RMB counter stock code 83038 and the HKD counter stock code 03038.

The recently launched ETF is designed as an index-tracking fund that seeks to invest in China A-shares with low carbon exposures. It stands out as Hong Kong's inaugural low-carbon-themed A-share ETF. The fund offers investors the opportunity to access low-carbon and ESG-themed securities.

In determining its constituents, the fund prioritises compliance with the United Nations Global Compact principles, and the weighting of the holdings is based on Carbon Emission Intensity data provided by ISS ESG.

The establishment of the ETF, preparation of offering documents, and the authorisation and listing processes were handled by Partner Rocky Mui and his team, consisting of Matthew Wan, Wynne Chan, Winni Choi, and Connie Fung. They provided legal advice and assistance throughout the process, including working with the Securities and Futures Commission (SFC) for authorization and the Hong Kong Stock Exchange (HKSE) for the listing.

“We are delighted to advise HSVM on the launch and listing of this ETF, which highlights the importance of ESG as an investment theme in Hong Kong and Mainland China. By tracking companies with low or lower carbon emissions, the ETF will help finance and accelerate the transition to a low carbon economy,” Rocky Mui said.

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