Singapore Exchange (SGX) today welcomed the listing of Lion-OCBC Securities China Leaders ETF with assets under management (AuM) of S$83 million, providing investors with growth opportunities offered by leading companies in China, the world’s second largest economy.
The ETF covers 80 large Chinese companies across 12 industries, including information technology, consumer and financials that collectively make up more than two-thirds of the portfolio. Its largest constituents comprise Tencent Holdings, Kweichow Moutai, Meituan, Ping An Insurance and Contemporary Amperex Technology.
Retail investors and digital investing platforms continue to drive record growth of ETF-managed assets in Singapore. As at June 2021, the combined AuM of these segments accounted for over a third of the S$10 billion in ETF assets in Singapore, which was 70% higher compared to a year ago.
Gerard Lee, Chief Executive Officer at Lion Global Investors, said, “The merits of investing in China are beyond doubts, made more so by geopolitical events of the last few years. As a result, investors now have a much better understanding of what leading Chinese companies can offer owing to extensive coverage by the media. Typically, most investors express their bets on China via commingled funds, overseas ETFs or direct stock purchase. Our last ETF listed in December 2020, Lion-OCBC Securities Hang Seng TECH ETF, demonstrated the keen demand for a Singapore-listed ETF even when such products are available elsewhere. With this positive experience, we are confident that the forthcoming Lion-OCBC Securities China Leaders ETF will be warmly received.”
Wilson He, Managing Director of OCBC Securities, said, “In today’s world, we cannot deny the decisive role China plays in the global economy and in re-shaping the business landscape. The way China influences the global economy is multi-faceted and China’s rise provides a good opportunity for customers to ride this wave of growth. Given the success of our first ETF launch last year, it’s a clear indication that customers are looking for more ways to expand their investment portfolio in a more calibrated manner. We are confident that Lion-OCBC Securities China Leaders ETF will be an attractive proposition to those who are looking to diversify their portfolio to include China stocks.”
Michael Syn, Head of Equities at SGX, said, “China continues to offer a compelling growth story and this ETF enables investors to access well-established and resilient industries as well as fast-growing, consumer-led trends, in one setting. Whilst the initial offer period coincides with a time of high market volatility, the strong investor reception is an indication of investors’ confidence in Lion Global’s ability in running the ETF. We are pleased to welcome this ETF to SGX’s multi-asset platform and we look forward to more innovative products from the OCBC Group.”
The Lion-OCBC Securities China Leaders ETF is the second ETF listing by Lion Global Investors and OCBC Securities, following the listing of the Lion-OCBC Securities Hang Seng Tech ETF, which has tripled its AuM to S$200 million since its launch in December 2020.