Simmons & Simmons has advised Samsung Asset Management (Hong Kong) Limited (‘Samsung’) on the listing of the first crude oil exchange traded fund (‘ETF’) ever in Hong Kong. The S&P GSCI Crude Oil ER Futures ETF will commence trading on The Stock Exchange of Hong Kong Limited on 29 April 2016.

Samsung is known as a pioneer of futures-based ETFs in Korea, and is now pioneering ETFs in Hong Kong also. This new ETF is designed to closely correspond to the S&P GSCI Crude Oil Index Excess Return, which tracks the performance of the nearest month West Texas Intermediate Futures Contracts, and follows Samsung’s launch of its first two ETFs in Hong Kong in February 2015, the KODEX HSI Futures ETF and KODEX HSI Futures RMB FX ETF.

Commenting on the work, partner Rolfe Hayden, said: "The listing of this new ETF in Hong Kong demonstrates Samsung’s pioneer status, introducing the first crude oil ETF in the Hong Kong market. This new ETF will strengthen Hong Kong’s position as Asia’s leading ETF centre, and broaden the range of investment products on offer to Hong Kong institutions and retail investors. It exemplifies the firm’s expertise in ETFs, and demonstrates our leading position in the development of pioneering and innovative products. We are delighted to have again worked with Samsung as it continues to develop its offering in the Hong Kong market."

The team based in Hong Kong and Singapore has been the legal adviser to approximately 77% of the ETFs that are listed in Hong Kong (including the three Samsung ETFs). Hong Kong is the second largest market for ETFs by market capitalisation and the third largest market for ETFs by turnover in Asia (including China and Japan).

The Simmons & Simmons team was led by financial markets partner Rolfe Hayden, assisted by financial markets consultant Eva Chan, both part of the international asset management and investment funds sector group.