The Lion-OCBC Securities China Leaders ETF will track the Hang Seng Stock Connect China 80 Index, which comprises the top 80 largest Stock Connect eligible Chinese companies listed in either Shanghai, Shenzhen and Hong Kong by market capitalisation. It will be the first China-focused ETF that will pay out dividends annually to investors.
“Typically, most investors express their bets on China via commingled funds, ETFs listed in Hong Kong or direct stock purchase,” said Gerard Lee, chief executive officer at Lion Global Investors.
“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,” he said.
The total AUM of ETFs listed in Singapore grew 57% in 2020 compared with the previous year, according to Singapore stock exchange data, and AUM grew a further 12% in the first six months of 2021. There are now 18 equity ETFs listed in Singapore.
The new ETF’s initial offering period started on 12 July 2021 and ends on 28 July 2021. It will be listed on the exchange on 2 August 2021 and can be traded in Singapore dollars or renminbi, using either cash or Supplementary Retirement Scheme.
The issue price is S$2 ($1.48) per unit, and the minimum order size is 10 units. Investors may subscribe to the ETF through the participating dealers – OCBC Securities, iFAST Financial, Phillip Securities, Tiger Brokers Singapore, UOB Kay Hian and CGS-CIMB Securities or through OCBC Bank’s ATMs and internet banking from 12 to 26 July 2021 with an application fee of S$2.00.
The Lion-OCBC Securities China Leaders ETF is classified as an Excluded Investment Product, meaning investors do not have to go through customer account review before purchase.
The Hang Seng Stock Connect China 80 Index was launched in May this year, and include financials such as Ping An Insurance, China Construction Bank, China Merchants Bank, tech giant Tencent, brewers Kweichow Moutai and Wuliangye Yibin, food delivery firm Meituan and battery-maker Contemporary Amperex Technology.
