ChinaAMC and Franklin Templeton Launch Two Hong Kong ETFs

ChinaAMC (HK) has listed two ETFs developed with Franklin Templeton, marking the firms’ first product launches together. The ChinaAMC Franklin HK-US Equity Cash Flow Focus ETF tracks 20 Hong Kong and 80 U.S. stocks, while targeting a 60% allocation to Hong Kong and 40% to the U.S. Its screens require positive operating cash flow in each of the past three financial years and positive forecast free cash flow. The ChinaAMC Franklin FTSE Innovative Drugs ETF tracks 30 Hong Kong and 70 developed-market stocks, targeting a 65% Hong Kong allocation. It focuses on pharmaceutical and biotechnology companies and adjusts weights for R&D intensity. Both indices give Hong Kong stocks a larger allocation than their share of constituent numbers. That makes the funds distinct cross-market strategies: one selects for cash generation, while the other emphasizes research-led drug development.