UOB Asset Management Ltd (UOBAM) has announced a shift in the index tracked by its United SSE 50 China Exchange-Traded Fund (ETF). Effective today, the ETF will track the FTSE China A50 Index and be renamed to UOBAM FTSE China A50 Index ETF. This change aims to provide broader coverage of China's A-shares market by including the 50 largest and most liquid A-shares on both the Shanghai and Shenzhen Stock Exchanges.
The United SSE 50 China ETF, listed on the Singapore Stock Exchange since November 2009, was Singapore's first China A-shares ETF denominated and traded in Singapore Dollars. It initially tracked only stocks listed on the Shanghai Stock Exchange. With this new benchmark, UOBAM intends to enhance investment opportunities for investors by encompassing both exchanges' top-performing shares.
"China’s strategic shift towards strengthening domestic growth, while maintaining its critical role in global manufacturing, continues to unlock diverse investment opportunities," said Mr. Thio Boon Kiat, Group Chief Executive Officer of UOBAM. "By adopting the FTSE China A50 index, we aim to provide investors with an efficient ETF vehicle to capture China’s growth story amid its evolving economic landscape."
Emerald Yau from FTSE Russell expressed delight in collaborating with UOBAM: "We are delighted to be working with UOBAM to help them provide their clients with coverage of the China A-Shares market." She highlighted that "the FTSE China A50 Index...has undergone multiple enhancements to meet investors’ needs while continuing to maintain a transparent, market cap-weighted approach."
The FTSE China A50 Index offers diversified exposure across various sectors and industries within China's markets. The index is backed by a robust derivative market in Singapore, featuring prominently traded equity index futures on SGX.
Investors can trade the rebranded ETF using either Singapore or US dollars through brokers or respective platforms using cash or Supplementary Retirement Scheme funds. For more details about this transition and trading options, individuals are directed to visit uobam.com.sg/ufca50.