Singapore Exchange (SGX Group) and Shanghai Stock Exchange (SSE) are deepening their relationship significantly by signing a Memorandum of Understanding (MOU) to launch an SSE-SGX exchange-traded fund (ETF) link, further strengthening the connectivity between Singapore and China. Under this agreement, SGX Group and SSE will jointly develop and promote the ETF markets in both countries through a master-feeder fund model.

This latest collaboration with SSE bridges two rapidly growing ETF markets in Asia and extends the range of ETFs available for listing of feeder funds between China and Singapore. The link also facilitates greater collaboration opportunities between issuers in both markets, enhancing investment options for investors.

This new link builds upon the successful listing of three ETFs in 2022 under the ETF Product Link with Shenzhen Stock Exchange (SZSE). Reflecting growing appetite for China equities ETFs, the daily turnover for China equities ETFs in the first quarter of 2023 grew more than 50% following the launch of CSOP CSI Star and ChiNext 50 Index ETF and UOBAM Ping An ChiNext ETF. Demand for China and Singapore equities ETFs in Singapore remains strong with a combined asset under management (AUM) of S$2.9 billion as of April 2023.

Loh Boon Chye, Chief Executive Officer, SGX Group, said, “SGX Group and SSE have enjoyed a long-standing relationship and we are pleased to forge closer ties with SSE to explore new areas of cooperation. We recognise that by leveraging the unique propositions of both markets, we can unlock the potential of more exciting opportunities for investors.”

Cai Jianchun, President, Shanghai Stock Exchange, said, “Congratulations on the substantive progress made in the ETF Product Link between SSE and SGX Group. With the signing of the MOU, SSE and SGX Group will continue to promote cross border cooperation between China and Singapore and develop more connectivity products investing in selected ETFs to meet the growing demand for cross-border opportunities between both markets.”

Source: SGX