00:00It's been a busy year, very exciting year with you, given with ETF Connect and the like.
00:04You're just about to launch a few more ETFs.
00:07I think four in total have already been planned.
00:09How has business been so far?
00:12Thanks, Yvonne, and David, for having me here today.
00:15So the business, as you said, business is booming and is incredibly good for 2022, 2025.
00:24And like you said, our flagship product, 3033, Hansen Tech Index ETF, double the AOM.
00:33Also, the performance is very stunning.
00:36These products are up more than 40% for this year.
00:40And also, we have some other very interesting products because of investors' attention goes to tech and other, like biotech as well.
00:52Because Hansen Tech, everybody's talking about that every day.
00:56So I want to spend a little bit of time talking about the biotech.
00:59I think it's the future stock.
01:02So the tick is 3174.
01:05It's a Hansen biotech ETF.
01:07So for that specific ETF, this year goes up more than 100%, the performance.
01:14And also, the AOM goes up like 3.5 times compared with for the year end of 2024.
01:23And I think behind the scene is this specific product is because, first of all, people have lived up their expectations because of the AI implementation on the pharmaceutical industry.
01:38Second big reasons for that push-up is because, you know, the U.S. pharmaceutical company dominate the industry.
01:47But for recent years, they are facing significant sort of patent cliff.
01:55They don't have much patent to use.
01:58So they began to purchase patents from other countries.
02:02So for this year, they already purchased like $50 billion patent.
02:09And probably you'll remember this year, Pfizer purchased a patent from 3S Bio.
02:20Yes.
02:20So like $1.25 billion.
02:22So those companies, they are not that big.
02:24So this sort of catalyst is really trading up, you know, make the share price goes up quite a lot.
02:33And also, I think, you know, China economy is because in the past it's only like labor benefit.
02:41Right now it's engineering benefit.
02:43For instance, like a CXO engineer in U.S. compared with China.
02:49The China cost is like one-sixth of the U.S. cost.
02:53So that means there's a lot of acquisition sort of activities happening in that industry.
02:59And also probably people were concerned, like, you know, the geopolitical tension between China and the U.S.
03:06Right.
03:06There is a lot of.
03:07But you can see at the early of this year, Trump administration also tried to pass a BioSecure Act in the U.S.
03:18But that act fails.
03:20So that demonstrates, like, the pharmaceutical companies in the U.S., they really have the big lobbying power, you know, to can protect their free trade or their industry.
03:33So we will see, you know, that one is also, you know, in the future will draw more and more attention as well.
03:39You know, as certainly investor interest, not just from mainland China, but global investors have returned to the Hong Kong markets.
03:47How are you planning your business around this renewed attention that's back to Hong Kong?
03:51As you look into the fourth quarter, into next year, are there specific strategies or tweaks to your strategy that you're looking to do as a business?
03:58Yeah, so I think for this year, we will say, you know, Hong Kong, China really begins to go back to the center of global capital markets.
04:10We can see more and more interest coming from especially region countries.
04:15So recently we went to Korea to have a roadshow.
04:19We find out, you know, the people are enthusiasm about China economy, China's AI, because people feel like, obviously, like Yvonne just said, you know, those are those AIs are trading darlings for investors.
04:36So people will see, like, for U.S., obviously, they have a lot of innovations, a lot of new products, a lot of new things from supply side.
04:47They have a lot of things comes out.
04:49But, you know, if you have tried to have a deal or trade, you need to have supply and also demand.
04:54So in between all this, you have to have something, you know, very good applications to make a deal.
05:01So people will see, like, Chinese in the past, in the Web2, you know, Chinese companies always can produce the best application, like, you know, Tenzing, Alibaba, TikTok.
05:15So people will see, you know, in the future, they don't want to miss the opportunity from China.
05:22And Hong Kong, you know, we have a lot of IPOs.
05:25You can see, like, IPOs, like, every hour.
05:28Every hour, every day is, right?
05:30Yeah.
05:30So because, you know, for this year, we have a lot of significant companies to come to the town and make Hong Kong, you know, in the past, Hong Kong is a proxy of mainland China's capital markets or economy.
05:45But right now, more and more important company comes to listing on Hong Kong.
05:49So make Hong Kong's capital markets, the depths of the markets, significantly improved.
05:55And people will view this as a really hub to invest into China.
05:59So I will say it's a long term, you know, I'm very positive to Hong Kong.
06:03So that's the, you know, that's the thing.
06:05When we go out to do the marketing, people are very getting very interesting to Hong Kong and also participate in those, you know, IPOs.
06:14Yeah, and tell us who these ETFs that you're about to launch.
06:18I think there's a Hang Seng U.S. Tech one coming up as well.
06:22What's the client type that you're targeting?
06:24Is it the institutional investor?
06:26Is it retail or is it more of these wealth management sort of platforms?
06:30I think they are all our target clients.
06:33So in CSOP, we probably have roughly the institution versus retail is like 55, 54, 55 is coming from retail.
06:43And the rest is coming from an institution.
06:46So we'll see that more and more, you know, people, retail institutions are getting to this market.
06:53Yeah.
06:54The, a lot of the reason why things have worked in the markets this year is because there's been so much liquidity in the market, right?
07:04The reason IPOs can get absorbed, reason why ETFs like the ones you guys launch are so well received.
07:09Do you, is there any reason to believe the liquidity taps end?
07:13Or is that an assumption that you think industry market players can expect to continue well into next year, that there will be this abundance of liquidity in Hong Kong?
07:23Yeah.
07:24Yeah.
07:24You're right, right, right.
07:25So the liquidity is the main reason to drive this market, you know, to up towards.
07:31And I think, you know, they will continue for a period of time.
07:35The reason is because the Fed is cutting their interest rate.
07:39People are pretty much, you know, from retail institutions, they are all on the risk on mood.
07:45So people are more willing to put their money, you know, get rid of from, from, from the banking account to, to like the stock market, especially, you know, in China.
07:54You know, China, the rates is very low.
07:57And we will see, but we are still not to see the major trend from like the, the bank savings relocate to, to, to, to the, to the capital markets.
08:14Do you think we're just at the beginning of that?
08:16Just as a final question to you.
08:17And what, what's, what's the strongest sign that savers are about to unleash those bank savings into the market?
08:23I think, yeah, from, from mainland China, we didn't, you know, see that trend.
08:30We see that trend begins.
08:31Not see the major wave comes yet.
08:35From other countries, probably are different.
08:38Right.
08:38But from China or Hong Kong markets, there's a slightly different.
08:43So, you know, a past, for past decades, the, the biggest trend for the global economy is globalization, right?
08:51So right now is probably fragmentation.
08:54It will be trend.
08:56So people try to diversify.
08:57So that's why we will see, you know, the liquidity, not from domestic, but also from outside of China or Hong Kong will come to, to try to do the diversification as well.
Be the first to comment