Lion Global Investors (LGI) and China Merchants Fund Management (CMF) will list the Lion-China Merchants CSI Dividend Index ETF on the Singapore Exchange (SGX) on Mar 28. This will be LGI’s eighth ETF and its third China-focused ETF.
The Lion-China Merchants CSI Dividend Index ETF aims to track closely, the performance of the CSI Dividend Index. The Index comprises 100 Shanghai-listed or Shenzhen-listed A shares of a certain scale and liquidity, with high cash dividend yields and stable dividends weighted based on their dividend yields to reflect the overall performance of the high-dividend stocks in the A-share market.
According to data from Bloomberg as of February 2025, the CSI Dividend Index delivered total returns of 12.3% in 2024, posting positive gains in three out of the past four years. In comparison, the CSI 300 Index posted positive gains in only one of those years.
The four dividend-paying ETFs from Lion Global Investors’ ETF range currently makes up 55% of LGI’s total ETF assets under management (AUM) of S$1.32 billion as of Mar 3. With the launch of LGI’s eighth ETF, more than half of LGI’s ETF range is now dividend-paying, reflecting the continued growth of demand for dividend-play ETFs.
Kwok Keng Han,chief marketing officer, Lion Global Investors says: “We believe that dividend-plays are poised for continued growth, with LGI’s dividend-themed ETFs seeing exceptional inflows in 2024, possibly due to its resilient and consistent recurring returns. The Lion-China Merchants CSI Dividend Index ETF as a new addition to our suite of ETFs reinforces our commitment in responding to investors’ demand, especially to those who are looking to generate passive income and capitalise on the potential growth of healthy Chinese companies.”
The Lion-China Merchants CSI Dividend Index ETF comprises a diversified portfolio of mature dividend-paying sectors with financials, energy and industrials among its top sectors and counts constituents such as Cosco Shipping Holdings and Jizhong Energy Resources among its top constituents (as of Feb 28). The ETF may appeal to investors who are seeking to build a resilient dividend-paying portfolio.
*All securities referenced above are not intended as recommendations to buy or sell.
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The CSI Dividend Index, with its unique selection methodology and extensive sample universe, is well recognised in the China A-share market. At the same time, the China Merchants CSI Dividend ETF, established in 2019, has gained recognition for its scale, liquidity, and transparent dividend mechanism.
With approximately RMB 6.60 billion in AUM as of Dec 31, 2024, the China Merchants CSI Dividend ETF is one of the most traded dividend-paying ETFs in the
Chinese market. The upcoming launch will mark the first cross listing of a CSI Dividend Index ETF outside of China.
Ou Zhiming, deputy general manager, China Merchants Fund Management says: “China Merchants CSI Dividend ETF has a track record of strong performance since its inception in 2019, providing Chinese investors with access and the opportunity to capture future growth opportunities end enjoy dividend returns of high-quality A-share companies. Partnering with Lion Global Investors to list the Lion-China Merchants CSI Dividend Index ETF on the SGX will enable that same opportunity to be accorded to local investors in Singapore. At the same time, it will also contribute to the development of the China A-share market.”
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Initial Offering Period
The Initial Offering Period (IOP) of the Lion-China Merchants CSI Dividend Index ETF is from Mar 10 until Mar 24. During the IOP, investors may subscribe to the ETF through OCBC ATMs/internet banking/mobile banking as well as participating dDealers that include iFAST Financial, OCBC Securities, Phillip Securities, Maybank Securities and Tiger Brokers. The issue price of each unit during the IOP is $1.00.
The ETF will list on the SGX on Mar 28 and will be available in SGD and CNH under the SGX codes of INC and ICH.
