Lion Global Investors, OCBC Securities to list China-focused ETF in SGX

The IPO runs from 12 to 28 July issued at S$2.00 each unit.

Lion Global Investors and OCBC Securities will list the Lion-OCBC Securities China Leaders exchange-traded funds (ETF) on the Singapore Exchange (SGX) on 2 August.

This is the first China-focused ETF in Singapore that will pay out annual dividends to investors.

OCBC Bank said the ETF’s initial offering period started on 12 July and will run until 28 July, priced at S$2.00 per unit.

“It will list on the SGX on 2 August and will be available in both Singapore dollar and Renminbi denominations,” it said in a release dated 12 July.

The bank said the ETF will track the Hang Seng Stock Connect China 80 Index which is composed of the top 80 largest Stock Connect eligible companies listed in either Shanghai, Shenzhen, and Hong Kong by market capitalisation.

The ETF is classified as Excluded Investment Product which is less complex and more easily accessible for retail investors. Upon listing, it will allow investors to buy much smaller lot sizes of 10 units at one time, making it more “attractive to younger and newer investors" starting at S$2.00 excluding commissions and fees it said.

“The way China influences the global economy is multi-faceted and China's rise provides a good opportunity for customers to ride this wave of growth. Given the success of our first ETF launch last year, it’s a clear indication that customers are looking for more ways to expand their investment portfolio in a more calibrated manner,” Wilson He, managing director of OCBC Securities said.

“We are confident that Lion-OCBC Securities China Leaders ETF will be an attractive proposition to those who are looking to diversify their portfolio to include China stocks,” he added.

Investors may subscribe to the ETF through the following participating dealers—OCBC Securities, iFAST Financial, Phillip Securities, Tiger Brokers Singapore, UOB Kay Hian, and CGS-CIMB Securities.

They may also invest through OCBC Bank’s ATMs and internet banking from 12 to 26 July with a S$2.00 application fee for any investment amount, according to the bank.

This is the second ETF listed by Lion Global Investors and OCBC Securities, following the Lion-OCBC Securities Hang Send TECH ETF in December 2020, which tracks the Hang Seng TECH Index that is made up of top 30 technology companies listed in Hong Kong by market capitalisation. The first ETF crossed S$220 in assets under management (AUM) within six months.

SGX data showed that the AUM of all ETFs listed in Singapore grew 57% in 2020 compared to the previous year. It also grew 12% more in the first six months of 2021.