CSOP CSI STAR and CHINEXT 50 Index ETF (SGX: SCY) December 8, 2022

With China beginning to relax its COVID-19 measures, is now the right time to start investing into China? What are some promising industries you should be looking into?

At the 20th National Congress of the Chinese Communist Party (CCP), President Xi reiterated that high quality development remains a top priority for China in order for it to achieve basic socialist modernisation by 2035.

In the congress, the CCP also highlighted that technological improvements, common prosperity and green development are crucial for China. The CCP also emphasised the need for China to continue to establish a globally competitive and open eco system of innovation to enhancing supply chain security and promote greater emphasis on self-reliance.

Technological innovation is the new growth engine of China for the following reasons:

Important GDP Drivers: New technologies (e.g., mobile internet, new energy) and emerging industries are becoming important forces that drive GDP growth in China.

Policy Support: Science and technology innovation is a key method for China’s economy to shift from high-speed growth to high-quality development, thus it has been a national strategy and the related sectors have received continuous policy support.

Huge Potential: Although the level of science and technology innovation and the proportion of research expenditure to GDP has been rising in recent years, it is still lower than those of developed countries in the 1990s, implying huge room for growth in the field of science and technology.

(Source: CSOP, UBS, Citi, Bloomberg)

Investors who are interested in the Chinese markets and want to start investing in an industry that has support and potential for growth can consider participating in the space of innovation and technology advancement in China.

Some notable indices for this industry include the CSOP CSI STAR and CHINEXT 50 Index ETF!

Here are some benefits of the CSOP CSI STAR and CHINEXT 50 Index ETF:

• Comprehensive Exposure within the greatest Chinese companies with the highest growth potential listed in the Shanghai & Shenzhen Stock Exchanges.
• Net profit growth of STAR companies and CHINEXT companies reached 59% and 43% respectively in 2020; the highest seen since 2010.
  In Q1 2021, the net profit of STAR and CHINEXT companies also further increased by 216% and 114% respectively.
• Underlying index: CSI STAR & CHINEXT 50 Index
• Transparent charges of management fees; which are currently at 0.89% per annum. (Maximum of 1.50% per annum of the Net Asset Value)

Overview

(Source: CSOP, UBS, Citi, Bloomberg)

If the above sounds like what you are looking for in your portfolio you can consider subscribing to them during the upcoming IOP!

Subscribe to the CSOP CSI STAR and CHINEXT 50 Index ETF during the Initial Offering Period (IOP) via POEMS 2.0

• Using Google Chrome Browser – Login to your POEMS 2.0 account > Acct Mgt > Online Forms > IPO Subscription – Irrevocable Form
• Select the IPO that you wish to subscribe to
• Read and agree to the prospectus, terms and conditions before subscribing to the financial product
• Application closes on 19 December 2022 (Monday), 5pm
• Ensure sufficient cash is present in your POEMS 2.0 account to complete the application process (inclusive of subscription amount, commission, transfer fee and GST) by the settlement date on 19 December 2022 (Monday), 5pm

Join us at our webinar to learn more about this ETF

IOP Subscription Detail

CSOP CSI STAR and CHINEXT 50 Index ETF

Key Information

*Please refer to the Prospectus for more information.

Benchmark Index Information

Join us at our webinar to learn more about this ETF

Terms and Conditions

• The subscription period for this ETF is from 8 December 2022, 9am to 19 December 2022, 5pm
• The online subscription will close on 19 December 2022, 5pm. No new application, amendment, or withdrawal is allowed after this deadline.
• The additional transfer fee charge of SGD 10 (Subject to GST) per application.
• Six types of accounts namely Cash Plus, Cash Management (KC), Prepaid (CC), Custodian (C), Margin (M) and Share Financing (V) accounts are allowed to subscribe for this ETF.
• Cash Trading Accounts (T) is are not eligible to participate in this subscription.
• Only one application is allowed per account.
• Each ETF unit priced at SGD 1 and the minimum order quantity is 1,000 units, at incremental order size of 1,000 units.
• 0.08% (Subject to GST) for all account types
• The total amount payable is denominated in SGD. Settlement currency will be in SGD.
• Sufficient funds (transfer fee and GST) must be in the client’s trading account by 19 December 2022, 5pm
• Application will be rejected if the account does not have/ reflect sufficient funds after 19 December 2022, 5pm.
• ETF units will be credited to the clients’ CDP or clients’ sub-account with Phillip Securities Pte Ltd by 30 December 2022.
• Clients will receive the full allotment of the number of ETF units that they subscribe to.
• Clients can start trading the ETF units when the ETF is listed on SGX on 30 December 2022.

Investments are subject to investment risks including the possible loss of the principal amount invested. You should read the ETFs’ prospectus and the accompanying product highlights sheets for key features and key risks and seek advice from a financial adviser (“FA”) or you should assess and consider whether the ETFs are suitable for you before proceeding to invest in the ETFs. Listing on SGX does not guarantee a liquid market for the units of the ETFs, which may be traded at prices above or below its net assets value or may be suspended or delisted. Unlike unlisted unit trusts, investors cannot create/subscribe or redeem ETF units directly with the fund manager of the ETFs. Please refer to the Prospectus of the ETFs for more details.