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HKEX Welcomes Hong Kong's First Carbon Futures ETF

Products
23 Mar 2022

  • First Carbon Futures ETF listing in Hong Kong
  • Extends coverage of Hong Kong-listed commodity ETFs to carbon credits
  • ADT of Hong Kong-listed ETPs reached $8.9 billion in the first two months of 2022, compared with $7.7 billion in 2021

 

Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to welcome today (Wednesday) Hong Kong’s first carbon futures ETF to its markets. The CICC Carbon Futures ETF (stock code: 3060 / 83060 / 9060) listed today extends the coverage of Hong Kong-listed commodity ETFs to carbon credits, an important asset class in the global drive to achieving carbon neutrality.

Managed by China International Capital Corporation Hong Kong Asset Management Limited, the new ETF tracks the ICE EUA Carbon Futures Index (Excess Return), which measures the performance of a long-only basket of European Union Allowance (EUA1) futures contracts.

HKEX’s Head of Exchange Traded Products Brian Roberts said: “Climate change and decarbonisation have been areas of increasing focus for investors worldwide. The launch of a carbon strategy ETF in Hong Kong opens up new opportunities for investors to participate in the reduction of carbon emissions in a convenient and cost effective way, adding to the vibrancy of our ETF product ecosystem.”

Increasing investor awareness has been driving strong asset growth in Hong Kong-listed ESG ETFs. The market capitalisation of ESG ETFs increased 84 per cent in 2021 to $4.5 billion by year-end, while their average daily turnover (ADT) registered $40.9 million in 2021, more than double that of 2020.

As of February 2022, 157 Exchange Traded Products (ETPs, ETFs plus Leveraged and Inverse Products) were listed on HKEX, with a market capitalisation of $423.5 billion. Trading momentum in the ETP market has been strong year to date, with ADT growing 15 per cent to $8.9 billion in the first two months of 2022 from $7.7 billion in the full year of 2021.

Further information about Hong Kong-listed ETPs is available in HKEX’s website.

 

Note:

  1. EUA is the tradable unit of pollution permits in the European Union Emissions Trading Scheme. One EUA entitles the holder to emit one metric tonne of carbon dioxide or equivalent amounts of greenhouse gases.

 

 

About HKEX

Hong Kong Exchanges and Clearing Limited (HKEX) is one of the world’s major exchange groups, and operates a range of equity, commodity, fixed income and currency markets.  HKEX is the world’s leading IPO market and as Hong Kong’s only securities and derivatives exchange and sole operator of its clearing houses, it is uniquely placed to offer regional and international investors access to Asia’s most vibrant markets.

HKEX is also the global leader in metals trading, through its wholly owned subsidiaries, The London Metal Exchange (LME) and LME Clear Limited.  This commodity franchise was further enhanced with the launch of Qianhai Mercantile Exchange (QME), in China, in 2018.

HKEX launched the pioneering Shanghai-Hong Kong Stock Connect programme in 2014, further expanded with the launch of Shenzhen Connect in 2016, and the launch of Bond Connect in 2017.

www.hkexgroup.com

 

Ends

Updated 28 Mar 2022