On the morning of December 30, SZSE and Singapore Exchange Limited (SGX) jointly held a launching ceremony of SZSE-SGX ETF Connect, marking the successful listing of the first pair of two-way SZSE-SGX ETF Connect products on SZSE and SGX. The ceremony was addressed by Vice Chairman Fang Xinghai of CSRC, Deputy Managing Director Leong Sing Chiong of Monetary Authority of Singapore (MAS), Mr. Zeng Pai, Member of the Standing Committee of CPC Shenzhen Municipal Committee, Secretary of Party Work Committee of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone and Secretary of Nanshan District Committee, President & CEO Sha Yan of SZSE, CEO Loh Boon Chye of SGX and heads of fund and securities companies via video.
The official launching of SZSE-SGX ETF Connect is an important measure taken by SZSE to implement the strategic plans of the CPC Central Committee and State Council for wider financial opening up, a beneficial practice of deepening and expanding win-win cooperation between China and Singapore on the capital market, and an another important result achieved in the two-way opening up of China’s capital market. In recent years, SZSE has continuously optimized the mechanism for interconnection with overseas markets and enriched and expanded the scope of ETF Connect cooperation. It has successively pushed forward the implementation of Shenzhen-Hong Kong and Shenzhen-Japan ETF Connect projects, and cumulatively launched six ETF Connect products, effectively promoting cross-border two-way investment and global resource allocation. In addition, the launching of SZSE-SGX ETF Connect has enabled China’s ETF to “Go Global” and Singapore to “Bring in” ETF, and helped further enrich the cross-border fund product system, improve the cross-border development capabilities of asset management industry, attract more medium and long-term allocation and valuation-based funds to the market and promote the structural optimization and healthy and stable development of the capital market.
Since the signing of the special memorandum of cooperation on ETF Connect by SZSE and SGX in December 2021, according to the overall arrangement of securities regulators of China and Singapore, SZSE and SGX have been teaming up to steadily advance the SZSE-SGX ETF Connect projects and the development of institutions of the two countries based on the characteristic advantages of two markets, and proactively facilitate the asset management institutions in the two countries to cooperate on the development of three characteristic connection ETF products. These products drew extensive attention of investors in the two countries and were actively purchased by them.
Specifically, UOBAM Ping An ChiNext ETF, the first one-way product under SZSE-SGX ETF Connect, was listed on SGX on November 14, which was the first ETF product launched in the market of Singapore and tracking the index of the ChiNext Board. On December 30, the first pair of two-way ETF Connect products (China Southern Asset Management CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Selected ETF and China Southern CSI STAR and ChiNext 50 ETF) established by Southern Asset Management and CSOP Asset Management Pte. Ltd. in cooperation was listed on SZSE and SGX respectively. Investment in characteristic ETF products in each other’s market can effectively channel various resource elements to cluster in key fields such as technological innovation, green development and low carbon.
Going forward, guided by the guiding principles of the 20th CPC National Congress, SZSE will conscientiously carry out the plans made at the Central Economic Work Conference. Under the unified leadership of CSRC, SZSE will constantly optimize the interconnection product mechanism and expand cross-border investment and financing channels, take an active part in international cooperation in the capital market, and enhance the organic collaboration on two kinds of resources in domestic and international markets. SZSE will also steadily press ahead with high-level institutional opening up of the capital market, endeavor to build the world-class exchange featured as a quality innovation capital center and better serve the creation of a new development pattern and pursuit of high-quality development.