Lion Global, OCBC Securities to list China-focused ETF on SGX in August

LION Global Investors and OCBC Securities will be listing a new China-focused exchange-traded fund (ETF) on Aug 2, OCBC said in a press statement on Monday.

The Lion-OCBC Securities China Leaders ETF tracks the Hang Seng Stock Connect China 80 Index, which comprises the top 80 largest Stock Connect eligible Chinese companies listed in either Shanghai, Shenzhen or Hong Kong by market capitalisation.

This will be Singapore's first China-focused ETF to pay annual dividends to investors. It will also allow them to diversify their investment portfolio through the inclusion of Chinese stocks. 

Its initial offering period will start from July 12 until July 28. It will then be available in both Singapore dollar and yuan denominations after listing on Aug 2. (see amendment note).

Upon listing, investors will be able to buy smaller lot sizes of 10 units at a time, allowing younger and newer investors to start at S$2 per unit, excluding commissions and fees, OCBC said.

Participating dealers include OCBC Securities, iFAST Financial, Phillip Securities, Tiger Brokers Singapore, UOB Kay Hian and CGS-CIMB Securities.

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The bank said the new ETF is classified as an excluded investment product, which is less complex and more easily understood by retail investors as opposed to special investment products (SIPs). Only qualified investors can invest in SIPs, which require investors to go through customer account reviews.

Lion Global Investors chief executive Gerard Lee said typically, most investors express their bets on China via commingled funds, ETFs listed in Hong Kong or direct stock purchase.

"Our last ETF listed in December 2020, Lion-OCBC Securities Hang Seng TECH ETF, demonstrated the keen demand for a Singapore-listed ETF even when such products are available elsewhere."

The Lion-OCBC Securities' Hang Seng TECH ETF tracks the Hang Seng TECH Index, which comprises the top 30 technology companies listed in Hong Kong by market capitalisation that have high business exposure to technology themes.

The ETF crossed S$220 million in assets under management within six months and attracted the highest inflows in the first half of 2021 among the 18 equity ETFs listed in Singapore.

OCBC Securities managing director Wilson He said: "The way China influences the global economy is multi-faceted and China's rise provides a good opportunity for customers to ride this wave of growth."

Amendment note: A previous version of this article incorrectly stated that the initial offering period will start on July 2 when it is in fact July 12. The article has been amended to reflect this change.