UOB Asset Management Begins Tracking FTSE China A50 Index

Singapore headquartered UOB Asset Management Ltd (UOBAM) has switched the United Shanghai Stock Exchange (SSE) 50 China Exchange-Traded Fund’s (ETF) Index to track the FTSE China A50 Index and consequently renamed the ETF to UOBAM FTSE China A50 Index ETF on Tuesday.

Since its listing on the Singapore Stock Exchange (SGX) on 26 November 2009, the United SSE 50 China ETF has played a pivotal role as Singapore’s 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. It was also the first China A-shares ETF denominated and traded in Singapore Dollars.

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 China’s capital markets by encompassing the 50 largest and most liquid A-shares across both exchanges.

UOBAM Group CEO Thio Boon Kiat said that China’s strategic shift towards strengthening domestic growth, while maintaining its critical role in global manufacturing, continued to unlock diverse investment opportunities.

The Shanghai-Hong Kong Stock Connect was launched in 2014 and the stock connect established a two-way trading link between SSE and the Stock Exchange of Hong Kong Limited (SEHK), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX).

Helping Clients

Emerald Yau, Head of Equity Index Product Management, APAC, FTSE Russell, an LSEG business, said that they were working with UOBAM to help them provide their clients to delve deep into the China A-Shares market.

“The FTSE China A50 Index, a pioneer in tracking the A-Share market’s 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 China’s domestic markets, further complimenting the FTSE China A50 ecosystem,” Yau added.

Launched more than 20 years ago, the FTSE China A50 Index has evolved in tandem with China’s progress to become one of FTSE Russell’s 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.

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.

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.