The Singapore Exchange (SGX) Group listed two exchange-traded funds (ETFs) concurrently in Singapore and Shenzhen as part of the ETF link between SGX and Shenzhen Stock Exchange (SZSE) on Dec 30.
The concurrent listings have combined assets under management (AUM) of over $270 million. The new listings have also brought the total AUM of ETFs listed on the SGX year-to-date (ytd) at $11.1 billion.
The CSOP CSI Star and ChiNext 50 Index ETF, which is managed by CSOP Asset Management and listed on the SGX, offers investors exposure to 50 innovative and high-growth potential companies listed on Shanghai Stock Exchange (SSE) STAR Market and SZSE ChiNext market.
CSI STAR and ChiNext’s 50 index constituents, which represent a total market capitalisation of RMB1.93 trillion ($372.78 billion), have recorded a 12.2% y-o-y growth in net profits in the 3QFY2022 despite the macro headwinds, says SGX Group.
At the same time, the SZSE welcomed the listing of China Southern CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF in Shenzhen. The ETF is the first SGX-listed ETF that’s directly available in China and reflects the strong domestic interest for Asia Pacific companies in the low carbon space.
The ETF, which was listed on the SGX in September, is the world’s first low carbon ETF with a geographical focus on developed and emerging markets in Asia Pacific.
“With the listings today, SGX Group and Shenzhen Stock Exchange have welcomed three participating ETFs under our ETF link this year, deepening the financial collaboration between China and Singapore. This is an exciting chapter for both exchanges given the rising prominence of ETFs in investors’ strategies and growing demand for portfolio diversification into broader geographies and sectors,” says SGX Group’s CEO Loh Boon Chye.
“We look forward to continuing our work with SZSE and issuers to further enhance market connectivity and create a vibrant ETF ecosystem between the two countries,” he adds.
“The ETF Product Link builds on China and Singapore’s strong cooperation in RMB internationalisation, and the growing presence of our financial institutions in each other’s markets. We look forward to new partnerships and growth opportunities for our financial institutions as we broaden financial cooperation in the capital markets and in emerging areas such as green finance,” says Leong Sing Chiong, deputy managing director, markets and development group at the Monetary Authority of Singapore (MAS).
Ding Chen, CEO of CSOP Asset Management, says, “We are very honoured to be the first to participate in the SZSE and SGX ETF link and introduce two products under the ETF link scheme to Singapore’s investors. The ETF cross-listing will greatly enrich the cross-border product offering and investment channels and meet the growing needs of Singapore and Chinese investors seeking more diversified investment solutions. Participation in the ETF link scheme is a milestone for CSOP’s development in Singapore and we hope the scheme can benefit both markets’ investors.”
Yang Xiaosong, China Southern Asset Management’s general manager adds, “With China’s unwavering commitment to further opening up its financial markets, the SZSE and SGX ETF link represents a key development in the internationalisation process and an important measure to build a modern capital market with Chinese characteristics.”