Citi Launches Taiwan Focused Exchange-Traded Index-Linked Products
Hong Kong – Tapping the growing market opportunity in Taiwan, Citi today launched its C-Tracks platform with three Taiwan index-linked Exchange Traded Certificates (ETCs) to be listed on the Hong Kong Stock Exchange. These are the first members of the new C-Tracks family of tracker products to reach the market. C-Tracks is a family of exchange-traded certificates issued by Citigroup Global Markets Holdings Inc.
The Taiwan stock market has been the best performer of all Asia Pacific markets so far in 2008, fuelled by various positive economic factors such as anticipated fiscal stimulus from infrastructure programs under the island’s new government, closer economic ties with the mainland, and the resurgence of net capital inflow and appreciation of the NT Dollar.
“We see increased interest from our clients to invest in Taiwan. Investors are looking for an easy-to-access platform to reach the Taiwan market. This C-Tracks platform with ETCs is created to allow our clients’ cost effective and easy access to the Taiwan market,” said Dickson Cheung, Managing Director, Asia Pacific Structured Products, Head of Greater China Sales, Citi.
“By making available sector index-trackers, C-Tracks gives investors an opportunity to invest in a targeted manner in some of Taiwan’s most popular sectors,” said Cheung.
The three index-linked ETCs will track three indices including TAIEX Building Material and Construction Sub-Index, TAIEX Finance and Insurance Sub-Index and TAIEX Electronics Sub-Index.
Harold Kim, Managing Director, Head of Asia Pacific Structured Products, Citi, said "Citi is creating a series of sector C-Tracks products in response to investor demand for securitized versions of products that are already popular in over-the-counter form among professional investors - by securitizing them and listing them on Hong Kong Stock Exchange we hope to make them available to a wider user base.
The ETCs have initial five-year terms but can be rolled repeatedly at the end of each five-year period to turn them into long-dated trackers. Citi will provide daily liquidity, bringing to the C-Tracks platform extensive experience as the market maker of some of the most liquid Exchange Traded Funds (ETFs) traded on the exchange in Hong Kong and Singapore. In addition, C-Tracks will offer a weekly facility to repurchase at net intrinsic value. The issuer has also waived the product fee for the first year.
The three ETCs will be listed on the Hong Kong Stock Exchange and commence trading on Tuesday, 27 May 2008. For further information on C-Tracks,
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