SINGAPORE--(BUSINESS WIRE)--CSOP Huatai-PineBridge SSE Dividend Index ETF (Stock Code: SHD) lists on 1 December 2023 on Singapore Exchange (SGX Group). The listing price for SHD is fixed at SGD $1.00 per share, with a trading lot of 1 share and annual management fee of 0.89%. SHD is a feeder fund, which will invest at least 90% of its Net Asset Value in the Huatai-PineBridge SSE Dividend Index ETF, referred to as the “Underlying Fund”. This investment will be made directly and/or indirectly via the QFI status granted to CSOP Asset Management Pte. Ltd. (the “Manager”) and/or through any permissible means available to the fund under the prevailing laws and regulations. Listed in 2006, the Underlying Fund is currently the largest dividend ETF in mainland China, with AUM of RMB 16.2 billion as of 30th September 20231.
Dividend strategies often serve as a cushion amid volatile market environments. The SSE Dividend Index comprises of 50 high quality dividend-paying companies listed on the Shanghai Stock Exchange (SSE) as its constituents. The SSE Dividend Index has a total market capitalization of RMB 129.6 billion, covering energy, financials, industrials, materials, and various other sectors2. With a current PE ratio of less than 6x, its valuation is considerably lower in comparison with other similar dividend indexes and core broad-based A-share indexes3. SSE Dividend Index stands out with competitive year to date (YTD) total return of 3.64% with better estimated dividend yield of 6.06% when compared to other stocks listed on SSE, as well as top stocks listed in Singapore and Hong Kong4.
Earlier this year in May, the Shanghai Stock Exchange and the Singapore Exchange officially signed a Memorandum of Understanding (MoU) on ETF product connectivity. This marked a new step in product cooperation between the capital markets in China and Singapore, and a new level for the cross-border product connectivity business. The CSOP Huatai-PineBridge SSE Dividend Index ETF is one of the first pair of products under the SSE-SGX ETF link, providing Singapore investors with access to high-quality A-share opportunities. On the same day, Huatai-PineBridge Fund Management will also cross-list the CSOP iEdge Southeast Asia+ TECH Index ETF on Shanghai Stock Exchange.
Loh Boon Chye, CEO, SGX Group, said, “We are pleased to welcome CSOP Asset Management as the inaugural ETF issuer leveraging the SSE-SGX ETF Link for their ETF launch. With this listing, CSOP now stands as one of the largest ETF providers on SGX with six ETFs. The SSE-SGX ETF Link not only enhances connectivity between Singapore and China but also injects vibrancy into the investment landscape, providing investors with a wider array of options for China exposure. We hope this pioneering move by CSOP encourages more issuers to join the ETF Link, and expand opportunities for all.”
Ms. Ding Chen, CEO of CSOP Asset Management, is delighted to announce the listing of the CSOP Huatai-PineBridge SSE Dividend Index ETF on the Singapore Exchange. She remarks, "This signifies the sixth ETF product from CSOP in Singapore, and we extend our appreciation to SGX for their unwavering support. This ETF offers an attractive opportunity for investors to leverage the high dividend-paying stocks in China. The successful launch of this ETF will not only expand Singapore's ETF spectrum, but also cater to the requirements of sophisticated investors.”
About CSOP Singapore
CSOP entered the Singapore market in 2019 and established CSOP Asset Management Pte. Ltd. Following four years of development, it has successfully established itself as one of the leading ETF issuers in Singapore. CSOP’s impressive growth is evident in its substantial assets under management (AUM) of US$1.17 billion. This AUM represents a significant portion of the overall Singapore ETF market, accounting for 11% as of 31 March 2023 (Source: CSOP).
CSOP has achieved several significant milestones in its product offerings. Notably, the ICBC CSOP FTSE Chinese Government Bond Index ETF stands out as the largest China government bond ETF globally. Additionally, it holds a position among the top three largest ETFs in Singapore. CSOP iEdge S-REIT Leaders Index ETF sets a record for the highest first-day trading turnover for an ETF on SGX when it was launched, and it was also Singapore's largest REIT ETF IPO. CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF and CSOP CSI Star and ChiNext 50 Index ETF represent the first cross-listed ETF pair between China and Singapore. Meanwhile, CSOP USD Money Market Fund offers a T+0 settlement arrangement to Singapore investors. (Source: CSOP, Bloomberg)
The investment product(s), as mentioned in this document, is/are registered under section 286 of the Securities and Futures Act (Cap. 289) of Singapore (the “SFA”). This material and the information contained in this material shall not be regarded as an offer or solicitation of business in any jurisdiction to any person to whom it is unlawful to offer or solicit business in such jurisdictions.
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Advice should be sought from a financial adviser regarding the suitability of the investment and/or investment product before making an investment. Investment involves risk. The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not necessarily indicative of future performance. Investor should read the prospectus and product highlights sheet, which can be obtained on CSOP website or authorized participating dealers, before deciding whether to invest. This document has not been reviewed by the Monetary Authority of Singapore.
Index Provider Disclaimer
All rights in the SSE Dividend Index (“Index”) vest in China Securities Index Company (“CSI”). CSI does not make any warranties, express or implied, regarding the accuracy or completeness of any data related to the Index. CSI is not liable to any person for any error of the Index (whether due to negligence or otherwise), nor shall it be under any obligation to advise any person of any error therein. The Product based on the Index is in no way sponsored, endorsed, sold or promoted by CSI and CSI shall not have any liability with respect thereto.
1 Source: Wind, Huatai-PineBridge Investments.
2 Source: Shanghai Stock Exchange.
3 Source: Wind, Huatai-PineBridge Investments, as of 31 August 2023.
4 Source: Bloomberg, CSOP, as of 3 November 2023.