UOB Asset Management Ltd (UOBAM) has switched the United Shanghai Stock Exchange (SSE) 50 China Exchange-Traded Fund (ETF)s Index to track the FTSE China A50 Index from today. Consequently, the ETF will be renamed to UOBAM FTSE China A50 Index ETF to reflect the change of index and investment objective.
Since its listing on the Singapore Stock Exchange (SGX) on Nov 26, 2009, the United SSE 50 China ETF has played a pivotal role as Singapores first China A-shares ETF in Singapore and provided investors with access to China onshore equity market - well ahead of the establishment of the Shanghai-Hong Kong Stock Connect in 2014. The ETF was also the first China A-shares ETF denominated and traded in Singapore Dollars.
To stay attuned to Chinas evolving market landscape and provide investors with broader opportunities, UOBAM is enhancing the ETFs investment scope. The ETF previously tracked the SSE 50 Index, which was limited to stocks listed on the Shanghai Stock Exchange. The ETF will now transition to a new benchmark, expanding its coverage to include both the Shanghai and Shenzhen-listed A-shares. This enhancement ensures a more comprehensive representation of Chinas capital markets by encompassing the 50 largest and most liquid A-shares across both exchanges.
Thio Boon Kiat, Group CEO, UOBAM, says Chinas strategic shift towards strengthening domestic growth, while maintaining its critical role in global manufacturing, continues to unlock diverse investment opportunities. By adopting the FTSE China A50 index, we aim to provide investors with an efficient ETF vehicle to capture Chinas growth story amid its evolving economic landscape.
Emerald Yau, Head of Equity Index Product Management, APAC, FTSE Russell, an LSEG business, says: We are delighted to be working with UOBAM to help them provide their clients with coverage of the China A-Shares market. The FTSE China A50 Index, a pioneer in tracking the A-Share markets performance, has undergone multiple enhancements to meet investors needs while continuing to maintain a transparent, market cap-weighted approach and ensure it remains a representative and relevant tool for gaining exposure to Chinas domestic markets, further complimenting the FTSE China A50 ecosystem."
Launched more than 20 years ago, the FTSE China A50 Index has evolved in tandem with Chinas progress to become one of FTSE Russells flagship benchmark indices. The index is backed by a liquid derivative market in Singapore, with the FTSE China A50 Index Futures being the top traded equity index futures on SGX.
See also: Nikko AM plans launch of Amova MSCI AC Asia ex Japan ex China Index ETF
The combined full market capitalisation of the FTSE China A50 Index constituents represents about a third of the total A-Share market. The index provides diversified exposure across multiple sectors and industries in China and includes China market leaders such as BYD Auto and Mindray. Additionally, the index is highly correlated to the broader China A-Shares market, making it more relevant to investors who are seeking investment or allocation into China A-Shares.
Investors will be able to trade the UOBAM FTSE China A50 Index ETF, in Singapore dollar (SGD) or US dollar (USD), through their brokers and respective platforms using either cash or Supplementary Retirement Scheme (SRS) funds.
