THE Lion-OCBC Securities China Leaders exchange-traded fund (ETF) was up in early morning trade as it began trading on Monday.

Units of the ETF hit a high of S$2.029 as at 11.31am, up 1.5 per cent from the subscription price of S$2.00, after 701,710 units changed hands.

The China-focused ETF aims to replicate the performance of the Hang Seng Stock Connect China 80 Index and will be the first in Singapore to pay annual dividends to investors.

Notable counters within the Hang Seng Stock Connect China 80 Index include Tencent, Kweichow Moutai and Meituan.

The new ETF is also 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 undergo customer account reviews.

The listing comes amid volatility in the Hang Seng Index last week after Beijing announced a series of measures that saw it tighten its grip on the economy.

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Food delivery giant Meituan lost a record 29 per cent in value between July 26 and 27, after Chinese regulators issued new rules requiring the company to ensure workers' incomes are above minimum salary levels, while Tencent also lost 16 per cent amid a wider regulatory crackdown on tech firms.

The US Securities and Exchange Commission (SEC) has halted the initial public offerings of Chinese companies since July 30 until they boost disclosures of risks posed to shareholders. This comes after Beijing imposed new measures requiring companies seeking to list in foreign countries to undergo a cybersecurity review. 

On Monday, the China Securities Regulatory Commission said that it is in talks with the SEC to find a suitable resolution and called for mutual respect and collaboration on the issue.

READ MORE: 

• China securities body seeks talks with US SEC on overseas IPOs

• SEC blocks Chinese IPO filings until risks are better disclosed

• Tencent, Meituan dumped by China traders who used to buy on dips