CHINAFUND｜Lion-China Merchants CSI Dividend Index ETF Listed as the First RMB-traded China-Singapore ETF Connectivity Product on Singapore Exchange

Translated from CHINAFUND

On March 28, the Lion-China Merchants CSI Dividend Index ETF was successfully listed on Singapore Exchange (SGX) as a new China-Singapore ETF link product. It is worth noting that the Lion-China Merchants CSI Dividend Index ETF establishes RMB shares and is the first ETF link product that can be traded in RMB. The launch of new China Assets by China Merchants Fund and Lion Global Investors (LGI) along with the introduction of RMB shares will help expand the influence of the China-Singapore ETF link, further enrich the supply of offshore RMB investment tools, and facilitate RMB internationalization, marking a solid step towards deepening financial cooperation between China and Singapore.

The China Merchants CSI Dividend Index ETF, which is the underlying ETF of the Lion-China Merchants CSI Dividend Index ETF, was established in November 2019. According to data by Shanghai Stock Exchange (SSE), as of March 26, 2025, its outstanding shares were 5.005 billion and the market cap was approximately 7.6 billion yuan. China Merchants Fund will continue to deepen China-Singapore financial cooperation, promote the launch of more high-quality innovative financial products, and create value for investors in both countries and globally.

Sun Mingxia, Deputy General Manager of China Merchants Fund, said, "As another remarkable result of the cooperation between LGI and China Merchants Fund, the Lion-China Merchants CSI Dividend Index ETF is the first product to be traded in RMB on the SGX under the China-Singapore ETF connectivity framework. It is not only an excellent achievement of the continuous cooperation between the two sides but also an important milestone in the process of RMB internationalization, which marks a new step in the continuous deepening of financial cooperation between China and Singapore."

Ng Yao Loong, Head of Equities at SGX Group, said, "This Lion-China Merchants CSI Dividend Index ETF marks the ninth under the ETF product links between Singapore and China, underscoring the growing collaboration between the two markets. We extend our appreciation to LGI for their commitment to expanding our ETF ecosystem and to China Merchants Fund for their continued partnership in bringing more diverse investment opportunities to the market. Their contributions play a vital role in strengthening cross-border connectivity and broadening access for investors."

Teo Joo Wah, CEO of Lion Global Investors, stated, "We are always committed to bringing more innovative solutions to the ETF market. The listing of Lion-China Merchants CSI Dividend Index ETF is a continuation of the growth of its ETF business and its commitment to further developing the ETF market. Singapore investors prefer sustainable and regular dividends, and we are thrilled to bring this flagship ETF by China Merchants Fund to Singapore."

Since its inception, the China-Singapore ETF connectivity initiative has successfully built a bridge between the capital markets of China and Singapore. The previously listed Lion-China Merchants Emerging Asia Select Index ETF and China Merchants Lion Emerging Asia Select ETF on the SSE and SGX have garnered significant attention and recognition from diverse market investors. The newly issued Lion-China Merchants CSI Dividend Index ETF is the first overseas ETF tracking the CSI Dividend Index, featuring underlying stocks with high cash dividend yields and relatively stable dividend payouts. The issuance of this product will facilitate the continuous expansion of offshore RMB asset supply, offering Singaporean and global investors an efficient instrument to access the Chinese market while jointly capitalizing on the long-term growth prospects and dividend yields of premium A-share listed companies.

The above information is provided for reference purposes only and does not constitute investment advice.