00:00And what's demand looking like? What's the outlook like for you as well on that?
00:04Well, actually, we're very excited to have the gold ETF listed yesterday.
00:09And we received a very strong demand in terms of turnover.
00:13And the turnover, actually, on the very first date, already exceeds 100 million Hong Kong.
00:19And the AUM actually doubled.
00:21And the reasons of why we launched this gold ETF is mainly due to the growing demand
00:28of the local Hong Kong investors in physical gold.
00:33And actually, they would like to have a more flexible and accessible gold investment solutions.
00:39And then we come to the idea of providing them a trading flexibility
00:43while at the same time provide them with a solution in case they want to redeem their gold physically.
00:51How does that work if they want to get the physical bit?
00:54What are the mechanics to be able to do that?
00:56Well, for that, it's pretty simple and straightforward.
00:59And, of course, if the customers want to redeem in gold,
01:03then they have to do it in the primary market directly through a selected broker.
01:08And not in the secondary market because for a secondary market, all settlement will be in cash.
01:14OK.
01:14So, if they are interested in redeeming their holdings in gold, then they approach their designated broker.
01:22And then they will arrange it directly with the fund manager, which is Hansen's investment.
01:27And then we will decide which is the best way for them to receive the gold physically.
01:34And for those investors who are also Hansen bank customers,
01:39then they have the privilege to redeem or collect the gold at Hansen's headquarter.
01:45And to meeting that redemption requirement, then the minimum redemption unit will be 250 hundred units.
01:57And all the multiple of it.
02:00The structure of that and how you can redeem physical gold,
02:03does that tell us that this is an ETF that's been designed more with a retail customer in mind
02:08as opposed to an institutional investor?
02:10And second to that as well, what are the sort of inflows that you're targeting for this?
02:14OK.
02:15That's an interesting question.
02:17Actually, when we first have the ideas in mind to develop a very different gold ETF in the Hong Kong market,
02:23because there's already some other gold ETF who are already available in the market,
02:28we are targeting not just individual investors,
02:31not just the private banking or retail customers,
02:35but also the institutional investors or even the sovereign fund.
02:39Because we have the gold stores, well, exactly 100% in Hong Kong.
02:43And another unique selling point of this gold ETF is that we have all the trading, settlement, custody and redemption
02:52all settled in Hong Kong, utilizing the infrastructure that Hong Kong already have for gold trading.
02:58So even for institutional clients, they might have a huge demand to store or hold physical gold.
03:07Then now they have a more flexible solution instead of storing the gold physically by themselves,
03:13which is quite troublesome or costly.
03:16They can now just simply invest into this product.
03:20So the products also, we are going to issue a tokenized share class as well.
03:27So to answer your questions, we are targeting different backgrounds,
03:31different types of gold investors and institutions, sovereign funds, individual clients,
03:39or even those clients who prefer to trade investment products via digital asset platform.
03:47Right.
03:48You mentioned just at the very start, there was very big turnover, of course, in the first day.
03:53And I think AUM, you mentioned, was it AUM?
03:55Double.
03:55Double.
03:56Yeah.
03:56Can you give us a sense, what's AUM now?
03:58And ideally, where would you like to see?
04:00Obviously, the sky is the limit.
04:01But where would you like, realistically, where do you think AUM will go?
04:05Yes.
04:06Well, actually, the AUM now is 200 million, 200 million Hong Kong.
04:12And then this is only the first day, so we expect that there are more inflow come with us.
04:20And there's no limit at all because, well, the fund has the capacity to issue new units.
04:26So as long as there's new demand, then we can initiate new units to meet the demand of the investors.
04:33And what's your plans also around the tokenization aspect of this and looking at different options,
04:40including a listing on some of the digital asset exchanges.
04:43What kind of timeline do you have for that and any preference on exchange as well?
04:47Yeah.
04:48Well, actually, we already entered the final stage of testing the ecosystem and infrastructure.
04:54So our plan is to issue tokenized share class within the first quarter this year.
05:00So it's pretty, it will be in the coming to events time.
05:04Yes.
05:04And in terms of our distribution trend load, and of course, we would like to expand the distribution
05:10apart from the very traditional wealth platform.
05:14So definitely those licensed digital as a platform will be our preference.
05:19In terms of just broader company strategy, specifically product strategy, right?
05:25So what industry or regulatory trends in Hong Kong do you think will be the most important
05:31to watch this year for your company and for the ETF industry?
05:36Well, actually, I think for the ETF industry, which I think that, well, actually we see very,
05:42well, good inflow from the East because of the ETF connect.
05:46And there's also the increase in, well, interest in the Hong Kong China market.
05:51There's also inflow from the international market as well.
05:55So I think currently there's a lot of very favorable market development initiative launched
06:02by the government.
06:03And we also see a lot of product innovation.
06:06So I think the environment is pretty favorable.
06:10So with more new participants entering into the market, I think we can grow the pie together.
06:17Okay.
06:18Just give us a rough sense of your pipeline, your product pipeline this year, without giving
06:23away, of course, the secrets.
06:24But is it going to be a busy launch year for Hang Seng?
06:27Definitely.
06:28We will keep on, well, observing the demand from the market and then, well, launch products
06:33appropriately.
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