Franklin Templeton teams up with ChinaAMC for its first ETFs in Asia
Franklin Templeton has finally planted its ETF flag in Asia. It brought a local guide along for the trip.
The US asset manager is partnering with China Asset Management, better known as ChinaAMC, on two cross-border exchange-traded funds. Both are listing on the Hong Kong Stock Exchange on September 29, 2026, and they are Franklin Templeton’s first ETF listings anywhere in Asia.
The firm frames the deal as an opening move, not a one-off. David Mann, Franklin Templeton’s Global Head of ETFs & Market Structure, described the ChinaAMC partnership as the first step in a broader plan to collaborate with local asset managers and gain exposure to investment themes in mainland China.
Two funds, two very different bets
The first product is the ChinaAMC Franklin HK-US Equity Cash Flow Focus ETF. It aims for approximately 60% exposure to Hong Kong equities and 40% to US equities.
The selection filter centers on companies with strong cash flows. Put simply, the fund favors businesses that actually generate cash, rather than ones that mostly generate investor presentations.
The second fund is the ChinaAMC Franklin FTSE Innovative Drugs ETF. This one targets pharmaceutical firms, with roughly 65% of the portfolio in Hong Kong names and 35% in developed markets.
Both funds trade in three currencies: Hong Kong dollars, US dollars and renminbi. That matters for a cross-border product, because investors can pick the denomination that fits their existing holdings instead of absorbing an extra conversion step.
The funds also leave certain sectors out entirely. According to the research findings, excluded areas include financials and traditional Chinese medicine, a choice intended to sharpen the focus on cash-flow resilience and innovation.
Why ChinaAMC, and why now
ChinaAMC is not a small partner. As of late 2025, the firm managed more than $465 billion in assets.
That scale gives Franklin Templeton something it would struggle to build alone: established infrastructure and deep familiarity with mainland China markets. Executives on both sides, Rene Buehlmann at Franklin Templeton and Tian Gan at ChinaAMC Hong Kong, emphasized the strategic nature of the collaboration.
What this means for investors and the ETF race in Asia
The Innovative Drugs ETF is the more thematic of the two. Its heavy Hong Kong tilt makes it a concentrated bet on pharmaceutical innovation listed in that market, balanced partly by developed-market exposure.
On the competitive side, Mann’s comment that this is a first step suggests Franklin Templeton intends to repeat the approach with other local managers. The research findings suggest the launch could encourage further product innovation and competition in the Chinese ETF landscape.
New ETFs also need to gather assets to stay viable. The early trading volumes and inflows after the September 29, 2026 listing will offer the first real signal of whether investors want what these two firms are selling.