SGX marks concurrent listing of two ETFs in Singapore and Shenzhen

Singapore Exchange (SGX Group) marked the concurrent listing of two exchange-traded funds in Singapore and Shenzhen, Guangdong province, on Friday, as part of the ETF link between SGX and Shenzhen Stock Exchange (SZSE), garnering combined assets under management of over S$270 million ($201 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 1.93 trillion yuan ($277.8 billion) market capitalization, CSI STAR and ChiNext 50 index constituents have recorded a 12.2 percent year-on-year growth in net profits in the third quarter of 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.

Loh Boon Chye, chief executive officer of 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 for markets and development of the Monetary Authority of Singapore, said, "The ETF Product Link builds on China and Singapore's strong cooperation in RMB internationalization, 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 of CSOP Asset Management, said, "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."

Yang Xiaosong, general manager of 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 internationalization process and an important measure to build a modern capital market with Chinese characteristics."