UOB Asset Management launches Singapore-China feeder ETF
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UOB Asset Management has teamed up with its Chinese joint venture partner Ping An Fund Management to roll out the first master-feeder exchange traded fund operating between the Singapore and Shenzhen stock exchanges.
The launch comes amid persistent volatility and plunging valuations in the China A-shares market this year, as a result of China’s strict zero-Covid policy and regulatory clampdowns in technology, property and other sectors.
The ETF’s initial public offering will last from October 21 to November 7 and the fund will list on the Singapore Exchange on November 14.
The ETF scheme linking Singapore and Shenzhen was announced last December after the two exchanges signed a memorandum of understanding to develop a link that would allow investors in Singapore and China to access feeder ETFs that link to locally listed ETFs on each other’s exchanges.
The initial scope of available products under the scheme is focused on equities ETFs because of the larger trading turnover, rather than the fixed-income and real estate investment trust ETFs that account for many of the largest ETFs in Singapore.
This story originally appeared on: Financial Times - Author:Ernest Chan
