SGX Group and Shanghai Stock Exchange ETF Product Link debuts first pair of ETFs

Published on 01/12/2023

  • CSOP Huatai-PineBridge SSE Dividend ETF listed on SGX offers investors access to large-cap and high-dividend paying companies listed on Shanghai Stock Exchange (SSE)
  • Huatai-PineBridge CSOP iEdge Southeast Asia+ TECH will be listed on SSE concurrently, allowing Chinese investors to tap the growth potential of tech sectors in Southeast Asia and India

Singapore Exchange (SGX Group) is pleased to announce the concurrent listing of two new exchange traded funds (ETF) with combined assets under management (AUM) of S$56 million. This is the first pair of ETFs launched under the product link between SGX Group and Shanghai Stock Exchange, a landmark initiative established this year to promote stock market connectivity between Singapore and China.

The surging investor appetite for ETFs in Asia reflects a growing recognition of their versatility and efficiency in diversified portfolio management. This listing expands SGX’s ETF shelf, with 11 China ETFs with AUM exceeding S$1.5 billion, reinforcing SGX’s position as the preferred marketplace for investors to access broad-based and thematic China ETFs.

The CSOP Huatai-PineBridge SSE Dividend Index ETF is listed on SGX and provides investors a gateway to large-cap and high-dividend segments in China’s A-share market. This is a feeder into the SSE-listed master ETF – Huatai-PineBridge SSE Dividend ETF. The master ETF tracks the SSE Dividend Index which comprises 50 top dividend paying companies listed on SSE. As China’s first and largest smart-beta[1] ETF, the Huatai-Pinebridge SSE Dividend ETF has an AUM of CNY16.2 billion (US$2.3 billion) as of end September 2023.

Concurrently, the Huatai-PineBridge CSOP iEdge Southeast Asia+ TECH Index ETF will be listed on SSE as a feeder into CSOP iEdge Southeast Asia+ TECH Index ETF, the master ETF listed on SGX in June 2023. This is the first ETF listed in China providing specific exposure to technology companies based in India and Southeast Asia countries such as Indonesia, Singapore and Thailand.

Loh Boon Chye, CEO, SGX Group, said, “We are pleased to welcome CSOP Asset Management as the inaugural ETF issuer leveraging the SSE-SGX ETF Link for their ETF launch. With this listing, CSOP now stands as one of the largest ETF providers on SGX with six ETFs. The SSE-SGX ETF Link not only enhances connectivity between Singapore and China but also injects vibrancy into the investment landscape, providing investors with a wider array of options for China exposure. We hope this pioneering move by CSOP encourages more issuers to join the ETF Link and expand opportunities for all.”

Leong Sing Chiong, Deputy Managing Director (Markets and Development Group), Monetary Authority of Singapore (MAS), said, “The launch of the SSE-SGX ETF Product Link builds on the successful launch of a similar link between SGX Group and Shenzhen Stock Exchange last year. This enhances capital markets connectivity between Singapore and China and allows investors to better access each other’s markets and ETF offerings. We look forward to more collaborations between fund managers to broaden the ETF product suite to serve investors in Singapore and China.”

Ding Chen, Chief Executive Officer, CSOP Asset Management, said, “We are delighted with the listing of the CSOP Huatai-PineBridge SSE Dividend Index ETF on SGX. This is the sixth ETF product from CSOP in Singapore and we extend our appreciation to SGX for their unwavering support. This ETF offers an attractive opportunity for investors to leverage the high dividend-paying stocks in China. The successful launch of this ETF will not only expand Singapore’s ETF spectrum, but also cater to the requirements of sophisticated investors.”

There are 43 ETFs listed on SGX with a combined AUM of S$11 billion as of end November 2023.

[1] Smart-Beta, also known as strategic beta, is an investment strategy that gets concentrated exposure to investment factors like momentum and quality. (Source: Morningstar)