The Lion-China Merchants Emerging Asia Select Index ETF, managed by Lion Global Investors (LGI), listed on the Singapore Exchange (SGX) on Dec 11.
The ETF is designed to track the growth of four Asian economies: India, Malaysia, Indonesia and Thailand.
It tracks the iEdge Emerging Asia Select 50 Index, created by SGX Index Edge. The index comprises the 50 largest companies across the four markets, which SGX says is characterised by strong economic expansion, rising consumer demand and growing foreign direct investment.
Ng Yao Loong, head of equities, SGX Group, says ETF adoption “continues to gain strong momentum” as investors seek efficient and diversified ways to build their portfolios. “This ETF exemplifies our approach to simplify Asia for investors, making it easier for them to access the growth potential of this region. We congratulate our partners, Lion Global Investors and China Merchants Fund Management, for their inaugural collaboration in bringing this innovative product to market.”
Teo Joo Wah, CEO of LGI, says emerging Asia is home to a broad range of competitive companies, and this allows investors to diversify and capitalise on growth opportunities in the four countries. “We are pleased that through our close collaboration with China Merchants Fund Management, investors in both Singapore and China can now harness the long-term potential of emerging Asia within the convenience and efficiency of an ETF.”
The ETF marks the first product jointly developed by China Merchants Fund and Lion Global Investors, and the first cross-listed ETF by China Merchants Fund.
Xu Yong, general manager, China Merchants Fund Management, says the firm plans to issue and list in China a feeder ETF to this new product by the 1Q2025.
With the addition of the Lion-China Merchants Emerging Asia Select Index ETF, there are now 47 ETFs listed on SGX with a combined assets under management of $12 billion as of end November.
