Lion Global Investors (LGI) and China Merchants Fund Management will list the Lion-China Merchants CSI Dividend Index ETF on the Singapore Stock Exchange (SGX) on 28 March 2025, according to a statement by LGI.
It will be LGI’s eighth ETF and its third China-focused ETF, while this launch will mark the first cross listing of a CSI Dividend Index ETF outside of China.
The ETF aims to track closely the performance of the CSI Dividend Index. The Index comprises 100 Shanghai-listed or Shenzhen-listed A shares of a certain scale and liquidity, with high cash dividend yields and stable dividends weighted based on their dividend yields to reflect the overall performance of the high-dividend stocks in the A-share market.
The China Merchants CSI Dividend ETF was established in 2019 and had approximately RMB 6.6bn ($912m) in AUM as of 31 December 2024.
Ou Zhiming, deputy general manager, China Merchants Fund Management, said: “Partnering with Lion Global Investors to list the Lion-China Merchants CSI Dividend Index ETF on the SGX will enable that same opportunity to be accorded to local investors in Singapore. At the same time, it will also contribute to the development of the China A-share market.”
The Lion-China Merchants CSI Dividend Index ETF comprises a diversified portfolio of mature dividend-paying sectors with financials, energy and industrials among its top sectors. The ETF may appeal to investors who are seeking to build a resilient dividend-paying portfolio, according to LGI.
Kwok Keng Han, chief marketing officer, Lion Global Investors said: “We believe that dividend-plays are poised for continued growth, with LGI’s dividend-themed ETFs seeing exceptional inflows in 2024, possibly due to its resilient and consistent recurring returns.”
The initial offering period (IOP) of the Lion-China Merchants CSI Dividend Index ETFis from 10 March until 24 March 2025.
During the IOP, investors may subscribe to the ETF through OCBC ATMs/internet banking/mobile banking as well as participating dealers that include iFAST Financial Pte. Ltd., OCBC Securities Pte. Ltd., Phillip Securities Pte. Ltd., Maybank Securities and Tiger Brokers (Singapore) Pte. Ltd.
The issue price of each unit during the IOP is S$1.00 ($0.75).
