LOC17:50
14:50 GMT
TOKYO, Nov 22 (KUNA) -- Hang Seng Bank, a unit of global lender HSBC Group,
launched Thursday Hong Kongs first Islamic fund, in a move that provides
Islamic investors with an opportunity to gain exposure to the Chinese and Hong
Kong markets while meeting Islamic law knows as Sharia.
"Islamic finance is one of the fastest growing sectors in the global
financial industry," William Leung, Hang Sengs General Manager of Personal
Financial Services and Wealth Management, said in a statement. "Global Islamic
financial assets are currently worth about USD 1 trillion and this figure is
expected to grow by 15 percent per year," said Leung.
The new fund, called Hang Seng Islamic China Index Fund, is the only
Islamic equity fund in the world that focuses on the mainland China and Hong
Kong markets and is managed by Hang Seng Investment Management Ltd. based in
Hong Kong -- an international financial centre in China, according to Leung.
"The Fund will help investors capture the potential investment returns
generated by growing international interest in these markets," he added.
The fund will invest primarily in the constituent stocks of the Dow Jones
Islamic Market China/Hong Kong Titans Index. The index comprises the 30
largest Shariah-compliant stocks of companies whose primary operations are in
China and Hong Kong and are traded on the Hong Kong Stock Exchange, according
to the bank.
Based on Shariah, Islamic funds are banned from investing in businesses
associated with alcohol, pork, gambling and weapons. They also preclude
interest-bearing instruments and companies with high levels of debt.
Founded in 1933, Hang Seng Bank operates around 150 branches and automated
banking centres in the city. It also established in 2007 wholly owned
subsidiary bank that operates a mainland China network of 20 outlets,
including in Beijing and Shanghai. (end)
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