SINGAPORE–(BUSINESS WIRE)–As Asia’s leading ETF issuer, CSOP is proud to be among the first to participate in the thrilling Singapore Exchange (SGX) and the Shenzhen Stock Exchange (SZSE) ETF link. Under the ETF link, CSOP CSI STAR and CHINEXT 50 Index ETF (Stock Code: SCY) has been listed on the SGX as a feeder fund of China Southern CSI STAR and CHINEXT 50 ETF, which is listed on SZSE, on 30 December 2022, unlocking the unique investment opportunities into the 50 Chinese companies with the highest growth potential in ChiNext and STAR Markets. SCY is traded in SGD at an inception price of SGD 1 with board lot size of 1 unit.
SCY tracks 50 fast-growing star performers with hard technology from the SSE’s STAR and SZSE’s ChiNext Markets. The stocks listed on SSE’s STAR and SZSE’s ChiNext boards represent key breakthroughs with high market recognition in China. Moreover, development of these companies is consistent with China’s national strategies advocating transition to quality. In Q3 of 2022, despite the macro headwinds, the net profit YoY growth rate of CSI STAR & CHINEXT 50 Index was 12.2%, significantly outperforming the CSI 300 index1.
On par with SCY, CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF (stock code: LCU/LCS) cross lists on SZSE in the form of China Southern CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF, becoming the first SGX listed ETF directly available to China domestic investors. LCS invests in more than 200 stocks in 11 APAC economies2, capturing growth opportunities in Asia Pacific, the region that offers the highest and most resilient sustainable growth potential.
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. As one of the most active ETF issuers in the region, CSOP Asset Management manages close to S$2 billion of ETF assets on SGX today and is a key partner to SGX in building our multi-asset ETF shelf. We look forward to deepening our relationship with CSOP to bring more product innovation to the market and support a vibrant ecosystem.”
Leong Sing Chiong, Deputy Managing Director (Markets and Development), 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.”
Ms. Ding Chen, CEO of CSOP comments, “We are very honoured to be the first to participate in the first pair of ETF listings under SZSE – SGX ETF link and introduce two products under the ETF link scheme to Singapore’s and China’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.”
Background information on the SZSE and SGX ETF link:
The SZSE and SGX ETF link was established under the auspices of the 17th China-Singapore Joint Council for Bilateral Cooperation as a new initiative to expand and strengthen financial cooperation between Singapore and China. SZSE and SGX Group entered a Memorandum of Understanding on 28 December 2021 to facilitate China and Singapore ETF issuers to access cross-border capital flows through the listing of ETFs that feed into master ETFs listed on the other exchange. The listing of CSOP CSI STAR and CHINEXT 50 Index ETF on SGX and China Southern CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF on SZSE signifies the deepening financial connect between China and Singapore and will provide investors in both markets more diversified investment opportunities.
About CSOP Asset Management
CSOP Asset Management Limited (“CSOP AML”) was founded in 2008 as the first offshore asset manager set up by a regulated asset management company in China. With a dedicated focus in China investing, CSOP AML manages public and private funds, as well as providing investment advisory services to Asian and global investors. In addition, CSOP AML is best known as an ETF leader in Asia. CSOP Asset Management Pte. Ltd. (“CSOP SG”) was established as wholly-owned subsidiary of CSOP AML in 2019, with a view of having Singapore as the regional base to facilitate and offer clients in the region with investment opportunities in China’s capital market. As of 31 August 2022, CSOP has more than USD 12 billion in assets under management.
The investment product(s), as mentioned in this document, is/are registered under section 286 of the Securities and Futures Act (Cap. 289) of Singapore (the “SFA”). This material and the information contained in this material shall not be regarded as an offer or solicitation of business in any jurisdiction to any person to whom it is unlawful to offer or solicit business in such jurisdictions.
The investment products mentioned in this material are not authorized by the Securities and Futures Commission in Hong Kong. This material and the information contained in it are for professional investors as defined under the Securities and Futures Ordinance (Cap. 571 of Laws of Hong Kong) only. This material and the information contained in it are not intended for circulation to, and should not be used or relied upon by the public of Hong Kong.
CSOP Asset Management Pte. Ltd. (“CSOP”) which prepared this document believes that information in this document is based upon sources that are believed to be accurate, complete, and reliable. However, CSOP does not warrant the accuracy and completeness of the information, and shall not be liable to the recipient or controlling shareholders of the recipient resulting from its use. CSOP is under no obligation to keep the information up-to-date. The provision of this document shall not be deemed as constituting any offer, acceptance, or promise of any further contract or amendment to any contract. The information herein shall not be disclosed, used or disseminated, in whole or part, and shall not be reproduced, copied or made available to others without the written consent of CSOP.
Advice should be sought from a financial adviser regarding the suitability of the investment and/or investment product before making an investment. Investment involves risk. The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not necessarily indicative of future performance. Investor should read the prospectus and product highlights sheet, which can be obtained on CSOP website or authorized participating dealers, before deciding whether to invest. This document has not been reviewed by the Monetary Authority of Singapore.
For the investment risks, please refer to the Prospectus and Product Highlights Sheet.
Index Provider Disclaimer:
The Index Provider of the Underlying Fund is China Securities Index Co., Ltd. (“CSIC”). The Index Provider is not related to the Underlying Fund Manager. An index licensing agreement was signed between CSIC and the Underlying Fund Manager.
CSIC has authorized the Underlying Fund Manager to use the CSI STAR & CHINEXT 50 Index for various purposes as stated in and subject to the conditions of the index licensing agreement entered into between CSIC and the Underlying Fund Manager, including using the CSI STAR & CHINEXT 50 Index as the performance benchmark for the Underlying Fund.
The Underlying Fund is not in any way sponsored, endorsed, sold or promoted by CSIC and CSIC makes no warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the CSI STAR & CHINEXT 50 Index and/or the figure at which the CSI STAR & CHINEXT 50 Index stands at any particular time on any particular day or otherwise. The CSI STAR & CHINEXT 50 Index is administered, calculated, and published by CSIC. CSIC shall not be liable (whether in negligence or otherwise) to any person for any error in the Underlying Fund and the CSI STAR & CHINEXT 50 Index and shall not be under any obligation to advise any person of any error therein.
1 Shanghai Exchange and Shenzhen Exchange
2 CSOP, as of 30 November 2022