China-headquartered asset manager CSOP has announced that it is one of the first to participate in the Singapore Exchange (SGX) and the Shenzhen Stock Exchange (SZSE) ETF link.
Under the ETF link, CSOP CSI STAR and CHINEXT 50 Index ETF (Stock Code: SCY) has been listed on the SGX as a feeder fund of China Southern CSI STAR and CHINEXT 50 ETF, which listed on SZSE, on 30 December 2022.
CSOP writes that their fund unlocks the unique investment opportunities into the 50 Chinese companies with the highest growth potential in ChiNext and STAR Markets. SCY is traded in SGD at an inception price of SGD1 with board lot size of 1 unit.
SCY tracks 50 fast-growing star performers with hard technology from the SSE’s STAR and SZSE’s ChiNext Markets. The stocks listed on SSE’s STAR and SZSE’s ChiNext boards represent key breakthroughs with high market recognition in China. Moreover, development of these companies is consistent with China’s national strategies advocating transition to quality, the firm says. In Q3 of 2022, despite the macro headwinds, the net profit YoY growth rate of CSI STAR & CHINEXT 50 Index was 12.2 per cent, significantly outperforming the CSI 300 index, CSOP says.
As with SCY, CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF (stock code: LCU/LCS) cross lists on SZSE in the form of China Southern CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF, becoming the first SGX listed ETF directly available to China domestic investors. LCS invests in more than 200 stocks in 11 APAC economies2, capturing growth opportunities in Asia Pacific, the region that offers the highest and most resilient sustainable growth potential.
Loh Boon Chye, Chief Executive Officer, SGX Group, says: “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. As one of the most active ETF issuers in the region, CSOP Asset Management manages close to SGD2 billion of ETF assets on SGX today and is a key partner to SGX in building our multi-asset ETF shelf. We look forward to deepening our relationship with CSOP to bring more product innovation to the market and support a vibrant ecosystem.”
Leong Sing Chiong, Deputy Managing Director (Markets and Development), Monetary Authority of Singapore (MAS), says: “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.”
Ding Chen, CEO of CSOP says: “We are very honoured to be the first to participate in the first pair of ETF listings under SZSE – SGX ETF link and introduce two products under the ETF link scheme to Singapore’s and China’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.”