My regular round-up of Asian ETF developments for Index Universe focuses on the cost of A share ETFs in Hong Kong.
There’s no doubt that the new collateral rules that the Securities and Futures Commission has brought in will mean a significant cost increase for many A share ETFs – which either means lower margins for providers or higher costs for users. Still, the difference between the costs for most funds and the lower TERs on the db x-trackers range is striking and seems hard to explain.