[SINGAPORE] The Amova E Fund ChiNext Index exchange-traded fund (ETF) was on Tuesday (Jul 22) listed on the Shenzhen Stock Exchange-Singapore Exchange (SZSE-SGX) ETF Link, to give investors a new way to access China’s innovation-led growth.
This is the first ETF in Singapore that tracks the ChiNext Index through a Singdollar-hedged fund class. It will provide investors with exposure to fast-growing, innovation-driven companies listed on the SZSE while mitigating foreign exchange fluctuations.
The ETF is managed by Nikko Asset Management and provides targeted access to companies in sectors such as technology, healthcare and advanced manufacturing – the key drivers of China’s transformation into a high-value economy.
The ChiNext Index features the 100 largest and most liquid growth-oriented companies that are aligned with China’s national priorities, which include digitalisation, green energy and industrial upgrading.
Eleanor Seet, president and director of Nikko Asset Management Asia and head of Asia ex-Japan at Nikko Asset Management, said: “This index captures the pulse of China’s innovation economy, and through the Amova E Fund ChiNext Index ETF, we are enabling Singapore-based investors to access that growth with greater precision and effective currency risk management.”
The Amova E Fund ChiNext Index ETF is part of the suite of Asia-focused ETF listings on SGX and expands the product shelf to 48 ETFs, with combined assets under management exceeding S$14 billion.
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Ng Yao Loong, head of equities in SGX Group, said: “The listing of the Amova E Fund ChiNext Index ETF on SGX adds to our suite of China A-Shares ETFs under the SZSE-SGX ETF Link. This launch is timely as it taps into rising investor interest in China’s innovation sectors and growth themes.”
Other listings in the past under the SZSE-SGX ETF Link include the CSOP CSI Star and ChiNext 50 Index ETF, which was listed on SGX on Dec 30, 2022. Managed by CSOP Asset Management, it offers investors exposure to 50 innovative and high-growth potential companies listed on the Shanghai Stock Exchange Star Market and SZSE ChiNext market.
China Southern CSOP CGS-CIMB FTSE Asia-Pacific Low Carbon Index ETF was listed concurrently in Shenzhen under the same link, as the first SGX-listed ETF directly available in China.
It is the world’s first low-carbon ETF with a geographical focus on developed and emerging markets in the Asia-Pacific, and was listed on SGX in September 2022.
SGX-listed ETFs recording top YTD returns
Some ETFs listed on the SGX recording the top year-to-date (YTD) returns as at Jul 18 include the Nikko AM Singapore STI ETF with a total YTD Singapore dollar return of around 13.2 per cent and S$74 million in net inflows YTD.
The Nikko AM-STC Asia Ex Japan REIT ETF has 7.4 per cent YTD returns and S$126 million in net inflows YTD; the iShares MSCI AC Asia Ex-Japan Climate Action ETF recorded a 14.4 per cent total YTD return, with YTD net inflows at S$52 million.
The SPDR Gold Shares continued to rake in the highest YTD total returns of 20.7 per cent as at Jul 18, with YTD net inflows at S$423 million.
