UOB Asset Management (UOBAM) has launched the UOBAM Ping An ChiNext Exchange-Traded Fund (ETF) on Oct 20.
The initial offering period for the ETF opens on Oct 21 and it will list on the Singapore Exchange (SGX) on Nov 14.
The ETF will allow retail investors to access China’s ChiNext market, a subsidiary of the Shenzhen Stock Exchange (SZSE). The ChiNext market is currently limited to mainland Chinese and foreign professional institutional investors only.
UOBAM’s latest ETF aims to track the ChiNext Index, which comprises the 100 largest and most liquid A-shares listed on the ChiNext Market of the SZSE.
The companies featured in the ETF are spread across diversified sectors in China. This includes industrials, which have a 41.1% weightage in the index; healthcare at 22.4%; information technology at 13.5% and finance at 7.7%.
This is the first ETF launched under the memorandum of understanding (MOU) signed by SGX and SZSE in December 2021. The MOU enables Singaporean and Chinese investors to access feeder ETFs listed locally on each other’s exchanges.
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In its statement, UOBAM says it sees long-term growth potential in China, with the country investing in research and development across a range of strategic industries to develop new engines of economic growth.
It adds that the Chinese government has set its sights on transforming the country to become a leader in fields such as biotechnology, electric vehicles and robotics.
“Investors will be able to ride on long-term investment trends, such as renewable energy and healthcare, which were identified in UOBAM’s megatrend report launched earlier this year,” reads the statement.
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“We are proud to contribute to the development of the ETF market in Singapore by being the first to list an ETF under the SGX MOU with Shenzhen Stock Exchange. This listing also marks a milestone in our partnership with our China-based joint venture partner Ping An Fund Management,” says Thio Boon Kiat, group CEO of UOBAM.
“Through this first-of-its-kind ETF, investors will have the opportunity to access innovative China-based companies in high growth sectors such as biotechnology and clean energy, managed by a well-established Chinese fund manager with a deep local presence,” he adds.
“The opening of China's capital markets has attracted greater attention from foreign investors to China domestic public funds. The SZSE-SGX ETF link presents a channel for investors to tap into a market with growing prospects. Investors can expect their funds to be professionally managed by our local investment teams with on-ground insights and expertise,” says Luo Chunfeng, CEO of Ping An Fund Management.
“UOBAM is our second largest shareholder and our long-term valued partner. This ETF is the result of a strong partnership between our two organisations. We look forward to many more such collaborations with UOBAM,” he adds.
Investors may subscribe to the ETF through the participating dealers which are: CGS-CIMB Securities, DBS Vickers Securities, iFast Financial, Moo Moo Singapore, Phillip Securities and Tiger Brokers Singapore.
Investors can also invest in the ETF via UOB’s ATMs, internet banking or the bank's TMRW app. They can also invest in the ETF via DBS’ ATMs, internet banking website, or mobile banking interface, as well as OCBC’s ATMs and internet banking. The issue price of each unit during the initial offering period is $1.
