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UOB Asset Management has launched the UOBAM Ping An ChiNext Exchange-Traded Fund this week – the first ETF launched under the Singapore Exchange Memorandum of Understanding with Shenzhen Stock Exchange. 

Listed on the Singapore Exchange, it will allow retail investors to access mainland China’s ChiNext Market, which is limited to mainland Chinese and foreign professional institutional investors, UOBAM said in a statement. 

It aims to track the ChiNext Index, which comprises the100 largest and most liquid A-shares listed on the ChiNext Market of the Shenzhen Stock Exchange.
 
It is the first ETF launched under the MOU which the SGX and the Shenzhen Stock Exchange signed in December 2021, enabling Singaporean and Chinese investors to access feeder ETFs listed locally on each other’s exchanges, the firm added.
 
Welcoming the move, Thio Boon Kiat, group CEO at UOBAM, said: â€śWe 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,” he continued.
 
Luo Chunfeng, CEO of Ping An Fund Management, added: “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,” he said.
 
UOBAM highlighted the long-term growth potential in China, saying that the country 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 firm added.
 
The UOBAM Ping An ChiNext ETF provides investors with exposure to themes that capture opportunities in innovative growth companies and sectors, the asset manager said. 

The companies featured in the ETF are spread across diversified sectors in China, including industrials (41.1 per cent), healthcare (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 report released earlier this year, the firm continued.
 
Initial Public Offering
The asset manager said that 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 ($0.7).
 
The Initial Offering Period and will close on 4 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, the firm added.

Investors can trade in Singapore dollars or US dollars, using either cash or Supplementary Retirement Scheme funds. As an Excluded Investment Product, the UOBAM Ping An ChiNext ETF will not require customers to fulfill Customer Account Review criteria in order to trade.