SGX Group marks the concurrent listing of two ETFs in Singapore and Shenzhen via SZSE-SGX ETF Link
New CSOP CSI Star and ChiNext 50 Index ETF listed in Singapore offers exposure to companies in China's innovative and emerging sectors
Chinese domestic investors gain access via SZSE to world's first APAC-focused low carbon ETF listed on SGX
SINGAPORE, Dec. 30, 2022 /PRNewswire/ -- Singapore Exchange (SGX Group) today marked the concurrent listing of two ETFs in Singapore and Shenzhen as part of the ETF link between SGX and Shenzhen Stock Exchange (SZSE), garnering combined assets under management (AUM) of over S$270 million.
The CSOP CSI Star and ChiNext 50 Index ETF, managed by CSOP Asset Management and listed on SGX, offers investors exposure to 50 innovative and high-growth potential companies listed on Shanghai Stock Exchange (SSE) STAR Market and SZSE ChiNext market.
Innovation-driven development has been a key focus for China, with new technologies and emerging industries becoming important economic drivers for the country's future growth. Representing a total of RMB1.93 trillion market capitalisation, CSI STAR and ChiNext 50 index constituents have recorded a 12.2% year-on-year growth in net profits in Q3 2022 despite macro headwinds.
Concurrently, SZSE welcomed the listing of China Southern CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF in Shenzhen, marking the first SGX-listed ETF directly available in China and reflecting strong domestic interest for Asia Pacific companies in the low carbon space. CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF, the world's first low carbon ETF with a geographical focus on developed and emerging markets in Asia Pacific, listed on SGX in September 2022.
Loh Boon Chye, Chief Executive Officer, SGX Group, said, "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. This is an exciting chapter for both exchanges given the rising prominence of ETFs in investors' strategies and growing demand for portfolio diversification into broader geographies and sectors. We look forward to continuing our work with SZSE and issuers to further enhance market connectivity and create a vibrant ETF ecosystem between the two countries."
Leong Sing Chiong, Deputy Managing Director, Markets and Development Group, Monetary Authority of Singapore (MAS), said, "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, Chief Executive Officer, CSOP Asset Management, said, "We are very honoured to be the first to participate in the SZSE and SGX ETF link and introduce two products under the ETF link scheme to Singapore'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."
Yang Xiaosong, General Manager, China Southern Asset Management, said, "With China's unwavering commitment to further opening up its financial markets, the SZSE and SGX ETF link represents a key development in the internationalisation process and an important measure to build a modern capital market with Chinese characteristics."
Total AUM of ETFs listed on SGX year-to-date stands at S$11.1 billion, recording positive inflows of S$125 million during the same period.
 Source: CSI website, 30 November 2022
About Singapore Exchange (SGX Group)
We are Asia's leading and trusted securities and derivatives market infrastructure, operating equity, fixed income, currency and commodity markets to the highest regulatory standards. We also operate a multi-asset sustainability platform, SGX FIRST or Future in Reshaping Sustainability Together (sgx.com/first).
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Chin May Nah
Marketing & Communications
Marketing & Communications
SOURCE SGX Group