The UOBAM Ping An ChiNext ETF has listed on Singapore Exchange (SGX), the first ETF listed via the ETF link collaboration between SGX Group and Shenzhen Stock Exchange (SZSE) announced last year.
Managed by UOB Asset Management Ltd (UOBAM), the ETF offers investors access to the ChiNext market, which hosts leading innovative and fast-growing companies in Mainland China, reads a Nov 14 press release.
The UOBAM Ping An ChiNext ETF seeks to replicate the performance of the ChiNext Index by investing into the Ping An ChiNext ETF, which is listed on SZSE and is managed by Ping An Fund Management Co Ltd. The ChiNext Index is the benchmark and flagship Index of the ChiNext market and comprises the 100 largest and most liquid A-shares listed on the market.
“As China focuses on technological innovation and green energy pathways to drive sustainable growth and economic success, the ChiNext Index allows investors to access potential opportunities presented by a wide range of innovative and developing companies and sectors which may stand to benefit as these macro trends play out in the future,” says SGX.
Loh Boon Chye, CEO, SGX Group, says: “We are excited to build on our relationship with UOBAM and Ping An, and welcome the listing of the UOBAM Ping An ChiNext ETF. As China’s capital market continues to internationalise and grow in influence on the global stage, efficient cross-border access is key to unlocking more trading opportunities for investors. Investors can look forward to more innovative product launches via the SZSE-SGX ETF link to meet their portfolio diversification needs.”
Lim Cheng Khai, executive director, Financial Markets Development Department, Monetary Authority of Singapore (MAS), says: “The launch of the UOBAM Ping An ChiNext ETF is a significant milestone in the journey towards establishing connectivity between Singapore and China’s capital markets. MAS is keen to support efforts by our industry players to launch more ETFs in each other’s markets.”
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Thio Boon Kiat, group CEO, UOBAM, says: “We are proud to be the first fund manager in Singapore to launch this ETF via the SZSE-SGX ETF link. This ETF not only allows investors to access innovative China-based companies in high growth sectors, but also provides the opportunity to tap deep local knowledge from a Chinese fund manager. We look forward to bringing more investment opportunities from China to our investors by leveraging the local expertise of Ping An Fund Management Company, our China-based joint venture partner of more than 10 years.”
With this listing, the combined assets under management (AUM) of China-focused ETFs listed on SGX has crossed $2.3 billion. In 2021, ETFs listed on SGX increased by almost 50% in AUM growth, with combined AUM at $12.55 billion.
Units in the ETF closed flat at 99.4 cents on Nov 14.
