SGX, Shenzhen exchange cross-list ETF pair, garnering over S$270m in AUM
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TWO exchange-traded funds (ETFs) were concurrently listed on the Singapore Exchange (SGX) and Shenzhen Stock Exchange (SZSE), garnering combined assets under management (AUM) of over S$270 million.
The move, via an ETF link between both bourses, boosted SGX’s total AUM of ETFs to S$11.1 billion in the year to date, with positive inflows of S$125 million during the same period.
The new Singapore-listed CSOP CSI Star and ChiNext 50 Index ETF is managed by CSOP Asset Management. It offers exposure to 50 innovative and high-growth potential companies listed on the Shanghai Stock Exchange (SSE) Star Market and SZSE ChiNext market.
SGX noted that CSI Star and ChiNext 50 index constituents recorded a 12.2 per cent year-on-year growth in Q3 2022 net profits despite macroeconomic headwinds. It also highlighted China’s key focus of innovation-driven development, as new technologies and emerging industries have become important economic drivers for the country’s future growth.
SGX’s chief executive Loh Boon Chye on Friday (Dec 30) said the latest listings brought participating funds under the SZSE and SGX ETF link to three, hence deepening the financial collaboration between Singapore and China.
“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,” said Loh.
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Concurrently, SZSE welcomed the listing of the China Southern CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF in Shenzhen. This marked the first SGX-listed ETF directly available in China. SGX said this reflected strong domestic interest for Asia-Pacific companies in the low carbon space.
The ETF was listed on SGX in September 2022. It is said to be the world’s first low-carbon ETF with a geographical focus on developed and emerging markets in Asia-Pacific.
Ding Chen, chief executive of CSOP Asset Management, said 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,” she added.
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