The UOBAM Ping An ChiNext ETF provides retail investors access to Shenzhen’s ChiNext Market
Singapore, 20 October 2022 – UOB Asset Management Ltd (UOBAM) today announced the launch of the UOBAM Ping An ChiNext Exchange-Traded Fund (ETF).
Listed on SGX, the UOBAM Ping An ChiNext ETF will allow retail investors to access mainland China’s ChiNext Market, which is limited to mainland Chinese and foreign professional institutional investors only. It aims to track the ChiNext Index, which comprises the 100 largest and most liquid A-shares listed on the ChiNext Market of the Shenzhen Stock Exchange.
This is the first ETF launched under the Memorandum of Understanding (MOU) which the Singapore Exchange (SGX) and the Shenzhen Stock Exchange signed in December 2021. The MOU enables Singaporean and Chinese investors to access feeder ETFs listed locally on each other’s exchanges1.
Mr Thio Boon Kiat, Group Chief Executive Officer, UOBAM, said, “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. 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.”
Mr Luo Chunfeng, CEO of Ping An Fund Management, said, “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. 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.”
Long-term growth potential in China
China has been investing in research and development across a range of strategic industries to develop new engines of economic growth. The Chinese government has set its sights on transforming the country to become a leader in fields such as biotechnology, electric vehicles and robotics.
The UOBAM Ping An ChiNext ETF provides investors with exposure to themes that capture opportunities in innovative growth companies and sectors. The companies featured in the ETF are spread across diversified sectors in China, including industrials (41.1 per cent), health care (22.4 per cent), information technology (13.5 per cent) and finance (7.7 per cent). Investors will be able to ride on long-term investment trends, such as renewable energy and healthcare, which were identified in UOBAM’s megatrend report2 launched earlier this year.
The Index deploys a robust methodology to filter and maintain the top 100 companies in terms of size and liquidity that are listed on the exchange. It is rebalanced twice a year. Notable companies on the ChiNext Index include China market leaders such as Contemporary Amperex Technology Co Ltd3 and Mindray4.
Initial Public Offering
The Initial Offering Period will open on 21 October 2022 and investors may subscribe to the ETF through the Participating Dealers – 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 TMRW app, DBS’ ATMs, internet banking website, or mobile banking interface, and OCBC’s ATMs and internet banking. The Issue Price of each unit during the Initial Offering Period is S$1.00.
The Initial Offering Period will close on 3 November 2022 for subscriptions made via ATMs, and on 7 November 2022 for subscriptions made via Participating Dealers.
Once the ETF is listed on SGX on 14 November 2022, investors will be able to trade through their brokers and respective trading platforms.
Investors can trade in Singapore dollar (SGD) or US dollar (USD), using either cash or Supplementary Retirement Scheme (SRS) funds. As an Excluded Investment Product (EIP), the UOBAM Ping An ChiNext ETF will not require customers to fulfill Customer Account Review (CAR) criteria in order to trade.
For more information about the UOBAM Ping An ChiNext ETF, visit uobam.com.sg/chinext.
1 Singapore Exchange (SGX) and Shenzhen Stock Exchange (SZSE) signed a Memorandum of Understanding (MOU) on 28 December 2021 to establish an exchange-traded fund (ETF) link, offering investors on both exchanges with a wider range of investment options. For more information, visit https://www.sgxgroup.com/media-centre/20211228-sgx-and-szse-sign-mou-link-etf-markets-singapore-and-china
2 Source: From Powerhouse to PowerCentre: The Megatrends Shaping Asia’s Economic Leadership in a Post-Covid World, UOBAM, 1 March 2022, https://www.uobam.com.sg/insights/2022-investment-outlook.page?path=data/uobam/2022-io
3 Contemporary Amperex Technology Co. Limited, abbreviated as CATL, is a Chinese battery manufacturer and technology company founded in 2011 that specialises in the manufacturing of lithium-ion batteries for electric vehicles and energy storage systems, as well as battery management systems. It is the second largest A-Share company in China.
4 Mindray Medical International Limited is a global medical instrumentation developer, manufacturer, and marketer based in Shenzhen, China.
