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) mk.ajs KUNA 221750 Nov 07NNNN