Witness history!The first pair of Shanghai Singapore cross listed ETFs were listed, another weapon

Mondo Finance Updated on 2024-01-19

The first pair of Shanghai-Singapore cross-listed ETFs to be listed!

On December 1, the first pair of Shanghai-Singapore cross-listed ETFs, Huatai Pineapple CSOP Pan-Southeast Asia Technology ETF and CSOP Huatai Pineapple SSE Dividend ETF were listed on the Shanghai Stock Exchange and SGX respectively, and domestic investors will usher in new cross-border investment options.

In terms of product management, Huatai Pineapple adopts a cross-linked investment approach, that is, through direct investment in CSOP iEDGE Pan-Southeast Asia Technology Index ETF, to achieve close tracking of the SGX Pan-Southeast Asia Technology Index. At present, the issuance of cross-border ETFs has become a new trend, providing investors with diversified asset allocation options.

The first pair of Shanghai-Singapore cross-listed ETFs to be listed!

On December 1, the first pair of Shanghai-Singapore cross-listed products, Huatai Pineapple CSOP Pan Southeast Asia Technology ETF and CSOP Huatai Pineapple SSE Dividend ETF, were listed on the Shanghai Stock Exchange and SGX respectively, marking the official launch of the Shanghai-Singapore Mutual Listing ETF.

As the first Shanghai-Singapore cross-listed ETF in the whole market, Huatai Pineapple CSOP Pan Southeast Asia Technology ETF (hereinafter referred to as Southeast Asia Technology ETF) provides a convenient channel for investors to seize the investment dividends of the pan-Southeast Asia region. This Southeast Asia Technology ETF is also the first ETF in China to invest in pan-Southeast Asia technology leaders, benchmarking against the SGX Pan-Southeast Asia Technology Index. The index covers the top 30 leading technology companies in India, Indonesia, Malaysia, Singapore, Thailand, Vietnam and other countries, and comprehensively reflects the development trend of the digital economy and technology industry in Southeast Asia and India.

From the perspective of industry distribution, the constituent stocks of the SGX Pan-Southeast Asia Technology Index mainly cover software and consulting (22.).20%), integrated retail (16.).84%), but also includes electronic components and manufacturing (2474%). In terms of constituent stocks, the top five constituents of the index are SEA, one of the world's consumer Internet giants, WiPro, India's top software company (Infosys), Indonesia's largest automobile manufacturer and dealer (ASTRA), and Southeast Asia's super app overlord (Grab).

In terms of product management, Huatai Pineapple adopts a cross-linked investment approach, that is, through direct investment in CSOP iEDGE Pan-Southeast Asia Technology Index ETF, to achieve close tracking of the SGX Pan-Southeast Asia Technology Index.

According to industry insiders, the investment method of mutual linkage has many advantages. From a trading point of view, the focus on investment targets can reduce the inconvenience of constituent stocks across multiple markets, time zones and currencies, reduce investment costs and improve investment efficiencyFrom the perspective of liquidity, since the underlying ETF can provide liquidity, the product is less affected by corporate actions such as suspension;From an operational point of view, mutual listing is convenient for managers to use all QDII quotas to participate in market transactions, or can avoid various inconveniences in terms of the number of trading days.

Cross-border ETF investment has become a trend.

Driven by domestic and foreign market demand and the vigorous layout of domestic public offerings, the cross-border ETF market is rising rapidly. With the increasing variety of products, the diversified cross-border** product system continues to attract capital inflows, and more and more investors are also deploying overseas markets through ETFs.

Exchange data shows that as of November 28, the total share of cross-border ETFs has increased by 1,512 this year4.2 billion shares, an increase of 58%, this growth reflects the investment enthusiasm of cross-border ETFs. The reporter noticed that cross-border ETF products with public offering institutions as product managers and investment in Hong Kong, South Korea, the Middle East and other markets are emerging.

For example, Huatai Pineapple CSOP Hang Seng Technology ETF and CSOP Huatai Pineapple CSI Photovoltaic Industry ETF are representatives of Shanghai-Hong Kong cross-listed ETFs. The product provides convenience for mainland investors to invest in the technology industry in the Hong Kong market, and for Hong Kong investors to invest in the photovoltaic industry in the mainland, and has become a bridge between the two markets. Taking Huatai Berry Hang Seng Technology ETF as an example, since the beginning of this year, the average daily turnover of this product has exceeded 1.5 billion yuan, and the product scale has exceeded 15 billion yuan, showing the market's recognition of such products.

In 2022, on the occasion of the 30th anniversary of the establishment of diplomatic relations between China and South Korea, the China-Korea Semiconductor ETF (QDII), which tracks the China-Korea Semiconductor Index, was also launched in a timely manner. The ETF not only allows investors to enjoy favorable factors such as domestic substitution of A-share semiconductors, AI development, and the turning point of the industry cycle, but also grasps the high prosperity and stable returns of the Korean semiconductor industry. This combination of A-shares and overseas markets not only demonstrates the growth potential of China, but also has the value of mature foreign markets, providing an investment option that attaches equal importance to income and experience.

In addition, overseas ETF products, which open the door to investors, are also expanding. On November 29, the Hong Kong Stock Exchange announced the official listing of CSOP Saudi Arabia ETF, which is the first ETF in the Asia-Pacific region to track Saudi Arabia**. Investors in Saudi Arabia ETFs can trade Saudi ** Index constituents directly in the Hong Kong market using HKD or RMB in the ETF, including oil giant Saudi Aramco, which has the largest assets of its kind in the world. This marks the moment investors now have direct access to Saudi Arabia's capital markets through exchange-traded** (ETFs) in Hong Kong.

The CSOP Saudi Arabia ETF tracks the FTSE Saudi Arabia Index, which offers investors the opportunity to track the performance of more than 50 leading mid-cap companies listed on the Saudi Exchange. The ETF provides comprehensive coverage of the Kingdom's financial, basic materials, energy and telecommunications sectors, capturing the drivers of the Saudi Arabian economy while providing a diverse range of investment opportunities.

Related Pages