Simmons & Simmons has advised BlackRock on the successful listing of the iShares MSCI Emerging Markets ETF (HK), a sub-fund of the iShares Asia Trust. This is the first exchange traded fund (ETF) using a master-feeder structure in Hong Kong, investing substantially into iShares MSCI EM UCITS ETF USD (Dist) (the Master ETF). The Master ETF, which is not authorised by the Securities and Futures Commission in Hong Kong, is currently listed on the London Stock Exchange, BATS Chi-X Europe, Euronext Amsterdam, Borsa Italiana, SIX Swiss Exchange and Deutsche Boerse Xetra.
The use of a master-feeder structure provides investors with a convenient and low-cost access to overseas-listed ETFs; it also allows issuers to leverage the scale and liquidity of their global product platforms.
Rolfe Hayden, partner, commented, “The listing of the first master-feeder ETF is a big milestone in the Hong Kong ETF market and further strengthens its position as Asia’s leading ETF centre. We are very pleased to have assisted BlackRock with the establishment and listing of this ETF, which gives investors a new opportunity to invest in large- and mid-cap securities in emerging markets.”
“The Simmons & Simmons team has assisted with many ‘first’ ETF products listed in Hong Kong, including the first ETFs adopting the open-ended fund company structure in January. We look forward to more listings of new products in the second half of this year.”
The legal team was led by Rolfe Hayden and assisted by Ivy Yam, Louise Ma and Janice Tang.
