Franklin Templeton has partnered with China Asset Management (ChinaAMC) to launch its first exchange-traded funds in Asia. The two cross-border funds were listed on the Hong Kong Stock Exchange on September 29, 2026.
The first product, the ChinaAMC Franklin HK-US Equity Cash Flow Focus ETF, allocates approximately 60% to Hong Kong equities and 40% to US equities, focusing on companies with strong cash flows. The second, the ChinaAMC Franklin FTSE Innovative Drugs ETF, targets pharmaceutical firms with 65% exposure to Hong Kong and 35% to developed markets.
Both funds support trading in Hong Kong dollars, US dollars, and renminbi. The portfolios exclude sectors such as financials and traditional Chinese medicine to maintain a focus on cash-flow resilience and innovation.
As of late 2025, ChinaAMC managed over $465 billion in assets. Franklin Templeton views this partnership as an initial step in a broader strategy to collaborate with local asset managers to gain exposure to mainland China investment themes.
