Solactive is pleased to extend its collaboration with ChinaAMC with the launch of the ChinaAMC Franklin HK-US Equity Cash Flow Focus ETF and the ChinaAMC HK-US HALO ETF, tracking the Solactive G2 Cash Flow Index NTR and the Solactive Global HALO Select Index, respectively. The two indices apply distinct systematic approaches to equity selection across the Hong Kong and U.S. markets.
The two strategies approach company fundamentals from different perspectives. The G2 Cash Flow strategy focuses on businesses with strong free cash flow characteristics, emphasizing their ability to generate cash after capital expenditures. The HALO (Heavy Assets, Low Obsolescence) strategy, which underlies Asia’s first ETF focused on the HALO theme, focuses on companies with substantial physical assets and relatively low obsolescence risk, examining how their asset base, cash flows, and reinvestment patterns shape their underlying operating characteristics.
The Solactive G2 Cash Flow Index comprises 100 securities, including 80 U.S. and 20 Hong Kong companies, drawn from eligible large- and mid-cap universes. Hong Kong constituents must be accessible through Southbound Stock Connect. The selection process excludes companies in the financial sector and applies forward free cash flow and historical operating cash flow screens, with free cash flow yield and liquidity criteria informing the final selection. Constituents are weighted by trailing twelve-month free cash flow, with 60% allocated to Hong Kong and 40% to the United States, subject to an 8% cap per security. The index is rebalanced quarterly.
The Solactive Global HALO Select Index comprises 60 securities, equally split between the Hong Kong and U.S. universes. The index focuses on companies across Core Resources & Materials, Supporting Industrial & Infrastructure, and Digital Infrastructure & Technology. Eligible companies are evaluated using six three-year fundamental measures spanning cash conversion, accruals, operating cash-flow stability, tangible assets, depreciation intensity, and reinvestment. Constituents are weighted by free-float market capitalization, with 62% allocated to Hong Kong and 38% to the United States, subject to a 40% cap per sector and a 9% cap per security. The index is rebalanced semiannually.
The ChinaAMC Franklin HK-US Equity Cash Flow Focus ETF was listed on 29 September 2026, on the Hong Kong Stock Exchange with the ticker 03520.HK (HKD), 83520.HK (RMB) and 41520.HK (USD).
The ChinaAMC HK-US HALO ETF will be listed on 30 September 2026, on the Hong Kong Stock Exchange with the ticker 3479.HK (HKD), 83479.HK (RMB) and 9479.HK (USD).
Timo Pfeiffer, Chief Markets Officer at Solactive, commented: “We are delighted to deepen our collaboration with ChinaAMC through these two ETF launches, which reflect our commitment to supporting clients with tailored index solutions and our ability to translate differentiated investment concepts into rules-based strategies. We look forward to continuing our collaboration with ChinaAMC as it expands its range of index-based investment solutions.”
Katie HE, Executive Director, Head of Strategic Business at ChinaAMC (HK), said: “These two ETFs reflect our continued focus on developing strategies that can serve distinct roles within a diversified portfolio. The ChinaAMC Franklin HK-US Equity Cash Flow Focus ETF applies a disciplined framework centered on cash-flow strength, while the ChinaAMC HK-US HALO ETF focuses on companies with substantial physical assets and relatively low obsolescence risk. Through our collaboration with Solactive, we are broadening the range of cross-market investment choices available to investors and further expanding our ETF offering.”
