The Lion-China Merchants CSI Dividend Index ETF has commenced trading, bringing the total ETFs quoted on SGX to 48.
This ETF is listed here under a collaboration between SGX Group and Shanghai Stock Exchange (SSE) called the SSE-SGX ETF Link.
This ETF, managed by Lion Global Investors (LGI), provides investors with access to a diversified portfolio of dividend-paying stocks.
The Lion-China Merchants CSI Dividend Index ETF is designed to mirror the performance of the China Merchants CSI Dividend Index ETF, which is listed on the SSE.
The CSI Dividend Index comprises of the 100 highest-ranked stocks listed in Shanghai and Shenzhen, based on their consistent dividend payments over the past three years.
These companies are selected for their strong financial health, typically having strong cash flows and high free cash flow to cover dividends.
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The top ten index constituents in descending order of weightage are Cosco Shipping Holdings, Jizhong Energy Resources, Heilan Home, Ninggo Huaxiang Electronic, Chongqing Department Store, Shanxi Coal International Energy Group, Shanxi Coking Coal Energy Group, Nanjing Irone & Steel, Anhui Hengyuan Coal Industry and Electricity Power and Guangdong Provincial Expressway Development.
“This latest ETF listing marks the ninth under the ETF product links between Singapore and China, underscoring the growing collaboration between the two markets," says Ng Yao Loong, head of equities at SGX Group.
"We extend our appreciation to LGI for their commitment to expanding our ETF ecosystem and to China Merchants Fund Management for their continued partnership in bringing more diverse investment opportunities to market.
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"Their contributions play a vital role in strengthening cross-border connectivity and broadening access for investors," he adds.
Teo Joo Wah, CEO of Lion Global Investors says the listing of Lion-China Merchants CSI Dividend Index ETF is a continuation of the growth of its ETF business.
Lion Global now has eight ETFs with over $1 billion in AUM.
"Singapore investors prefer sustainable and regular dividends, and we are thrilled to bring this flagship ETF by China Merchants Fund Management to Singapore," he adds.
Sun Mingxia, deputy general manager of China Merchants Fund Management calls the listing of this eTF "a landmark accomplishment" in the deepening international cooperation between China and Singapore under the SSE-SGX ETF Link.
"The Lion-China Merchants CSI Dividend Index ETF will provide both domestic and international investors with the opportunity to participate in the growth and dividend yields of high-quality A-share listed companies," she says.
