HSBC appointed securities services provider for Hong Kong’s first broad-based ESG ETF

Custodian continues run of ETF mandates in Asia with deal to service Haitong MSCI China A ESG ETF.

By Jonathan Watkins

HSBC has been named as securities services provider by Haitong International Asset Management for the first broad-based ESG ETF listed on Hong Kong Stock Exchange.  

The new ETF is tracking MSCI China A ESG Universal Index, and offering exposure to China A-shares with a robust environmental, social and governance profile including clean energy, electric vehicles, and consumer-oriented good and services.  

The deal continues the bank’s run of winning asset servicing mandates for ETFs in Asia, following agreements with BlackRock in Singapore and Hong Kong.  

“We are pleased to support Haitong International in launching this pioneering ETF and at the same time provide investors with more channels to support sustainable finance,” said Patrick Wong, head of China business development and client management, securities services at HSBC.   

In the latest HSBC Sustainable Financing and Investing Survey 2020, more capital market participants in Asia than elsewhere in the world are attaching greater importance to sustainable finance since the COVID-19 pandemic. This new ETF further strengthens our commitment to ESG and the development of the ETF market in the region, Wong added. 

The launch of this ESG-themed ETF further positions us to be one of the most innovative players,” said Dr. Yang Jianxinhead and chief investment officer of Haitong International Securities Group. We appreciate the continuous support from HSBC and their outstanding professional custodian services, which enabled us to bring more exciting products to global investors.  

It hasn’t only been in Asia where HSBC has been securing ETF mandates this year. In July, the custodian was appointed by passive asset manager Tabula Investment Management to provide securities services to three of its new sub-funds on their Irish-domiciled Tabula ICAV UCITS platform. Meanwhile in May, HSBC agreed to provide a bundled outsourcing service for a new fixed income ETF platform operated by Tabula.

HSBC also announced recently that its securities services business will provide custody and fund administration for two new sustainable ETFs launched by the bank’s asset management arm.