Phillip-China Universal MSCI China A 50 Connect ETF

Why invest in China A-shares?

Over the past few decades, China has undergone unprecedented economic expansion and  demonstrated a formidable track record of robust GDP and capital markets growth, establishing itself as a global economic powerhouse.

China’s implementation of market-oriented reforms and the opening up of its economy to foreign investments have been pivotal in fostering this growth. Its capital markets, including the Shanghai and Shenzhen stock exchanges, have seen remarkable development, attracting a diverse range of domestic and international investors. The government’s strategic focus on innovation, technology, and infrastructure development has further propelled the nation’s economic prowess. As a result, China has not only become the world’s second-largest economy but also significantly influenced global economic trends.

Global stock market valu by country (US$ trillions), Dec 2023

China’s A-shares, which represent shares of mainland Chinese companies listed on the Shanghai and Shenzhen stock exchanges, offer compelling opportunities for portfolio diversification. Incorporating A-shares into a portfolio provides exposure to a vast and dynamic market that is often less correlated with traditional global markets, such as those in the United States and Europe.  

China’s growth and its transition towards a more consumption-driven economy contribute to the diversity of sectors available for investment, ranging from technology and e-commerce to healthcare and manufacturing. Additionally, the inclusion of A-shares allows investors to tap into the rising middle class and changing consumption patterns within the world’s most populous country. As China continues to open up its capital markets to foreign investors, A-shares can serve as a valuable component for investors seeking a well-rounded and diversified portfolio. 

China’s equity index has low correlation with other main markets

China’s A-shares offer an enticing investment proposition due to their attractive valuations when compared to other major stock markets. Despite the impressive economic growth and technological advancements in China, many A-share-listed companies still trade at relatively lower price-to-earnings ratios compared to their counterparts in developed markets.   This attractive valuation stems from a multitude of factors, including historical perceptions of risk, regulatory environments, and market sentiment. Recent developments, such as geopolitical shifts and concerns about China’s decelerating growth, have pushed valuations down further. As investors sift the wheat from the chaff progressively, there will be opportunities for capital appreciation of quality companies’ shares. Investors seeking opportunities for value and growth may find China’s A-shares particularly appealing, as they represent a diverse range of industries with significant potential for expansion and profitability at comparatively reasonable prices.  PE ratios of world major markets

In terms of capacity, China is well positioned to provide stimulus to boost economic growth. Notably, it boasts the largest foreign exchange reserves in the world, nearly three times larger than that of the second-largest holder.

In recent years, China had shown reluctance in providing massive economic stimulus, as policymakers were concerned about the potential risks associated with excessive debt and financial imbalances. The focus was on structural reforms, deleveraging, and maintaining financial stability. However, the stance has evolved, particularly in response to the economic challenges. China has shown an increasingly pro-growth policy stance to stimulate the economy, including fiscal and monetary policies aimed at boosting domestic consumption and investment. Notable recent measures include:

Monetary policy: 

  • Reductions in banks’ reserve requirement ratios 

Fiscal policy: 

  • Proactive expansionary 2024 budget at 3% budget deficit 
  • 1 trillion yuan financing for affordable housing programs 


  • Tightening trading restrictions to limit short-selling 
  • Stock purchases by state-affiliated funds 

Why invest in Phillip-CUAM MSCI China A50 ETF?

The ETF tracks the benchmark MSCI China A 50 Connect index, with exposure to equities of leading and well-established companies within the Chinese market. These companies are often considered as the pillars of China’s economic landscape and are characterised by strong fundamentals, stable performance, and significant market capitalisation.  

The ETF is a Feeder Fund, and will primarily invest its Net Asset Value in the mainland-listed China Universal MSCI China A50 Connect ETF.

Investing in these stocks is commonly viewed as a strategy to capitalise on the long-term growth potential of the Chinese economy. The exposure is also reflective of the country’s ongoing transition toward a more consumption-driven and innovation-focused economy. Investors looking for stability and long-term growth in the Chinese market often consider including core China stocks in their portfolios.  

Mainland A-shares have demonstrated a solid performance track record, compared to their counterparts – China stocks that are listed in foreign markets, such as Hong Kong or in the US. One contributing factor is that domestic companies are less exposed to regulatory interventions from Chinese authorities which focus on big-tech companies that are generally listed abroad.

Examples of top ETF constituents: 

Name Sector Remarks 
Kweichow Moutai Consumer Staples Leader in liquor industry 
CATL Industrials Leader in power equipment and new energy 
Zijin Mining Materials Leader in mining & minerals 
Wanhua Chemical Materials Leader in chemical industry 
Luxshare Precision Information Technology Leader in electronics manufacturing 
BYD Consumer Discretionary Leader in auto industry 
Foxconn Industrial Internet Information Technology Leader in precision equipment 
China Yangtze Power Utilities Leader in hydropower generation 
China Merchants Bank Financials Leader in banks 
LONGi Green Energy Information Technology Leader in photovoltaic industry 


Note the outperformance of the benchmark MSCI China A 50 Connect index versus other comparable China stock indices, particularly against broad China indices that incorporate offshore-listed China shares. 

Returns of different China related indices 2014-2023

Many broad China stock indices are disproportionately weighted towards ‘old economy’ sectors due to historical economic structures and the dominance of traditional industries in the early stages of China’s economic development. While China has been actively transitioning towards a more technology-driven and consumer-oriented economy, the legacy of these older industries continues to influence the composition of stock indices.  

For the ETF and its tracking benchmark, the MSCI China A50 Connect Index, the largest sector weighting falls below 20% – much less than other products on the market. This balanced sector composition provides a more diversified exposure to China’s economy and prevents an overweight position in “old economy’ sectors, like financials and real estate, and averts an underweight position in the ‘new economy’ sectors, like technology and health care.  

Balances sector exposure

The ETF has a very low management fee of 0.01%. Note that because it is a feeder into the mainland-listed master ETF (China Universal China A50 Connect ETF), the management fee of the master ETF (0.50%) should also be added to the total management fee that comprises the fund management expense to the investor. 

This is the same approach as all other SGX-listed ETFs that utilise such feeder-master approach – essentially those ETFs that operate on the ETF link between Singapore and mainland China. 

We believe by offering an extremely low management fee of 0.01% on the feeder level, we can essentially provide Singapore investors with costs comparable to what a mainland investor would incur when investing directly into the master ETF in mainland China.

Who is suitable for this ETF?

The ETF is well-suited for investors seeking:

  • An investment whose performance closely corresponds to the MSCI China A 50 Connect index 
  • Exposure to core China A-shares, with a well-balanced sector exposure
  • The transparency and rules-based approach of ETFs for investing in emerging markets 
  • High liquidity and easy diversification across the Mmainland China’s stock market
  • Ability to invest in China’s domestic market without the complexity of directly purchasing individual stocks 
  • Gain access to 50 leading companies in various industries in China’s A-shares through a single transaction
  • ETFs that offer a lower expense ratio, enhancing cost-efficiency

Subscribe to Phillip-China Universal MSCI China A 50 Connect ETF during the Initial Offering Period (IOP) via POEMS 2.0

  1. Login to your POEMS 2.0 account > Acct Mgt > Online Forms > IPO Subscription – Irrevocable Form 
  2. Select the IPO that you wish to subscribe to 
  3. Read and agree to the prospectus, terms and conditions before subscribing to the financial product 
  4. Application closes on 13 March 2024, Wednesday at 5pm 
  5. Ensure sufficient cash is present in your POEMS account to complete the application process (inclusive of subscription amount, transfer fee and GST) by the settlement date on 13 March 2024, Wednesday at 5pm
Subscription Period:  4 March – 13 March 2024 
Listing Date:  20 March 2024 
Subscription price:  SGD 1.00 
Minimum Quantity:  1,000 unit 
Commission Fees:  Zero Commission 
Transfer Fees: 

SGD 10.00 (Subject to GST) for Cash Management Account. 

Transfer fees will be waived for subscription of 5000 units and above.

Other Phillip Investment Account Types will not be subject to transfer fee charge 

Settlement Currency:  SGD 
Trading Currency:  SGD, USD 
Allotment  Full Allotment 
Name  Phillip-China Universal MSCI China A 50 Connect ETF  
Investment Objective 

To replicate as closely as possible, before fees and 

expenses, the performance of the MSCI China A 50 Connect Index 

Benchmark Index   MSCI China A 50 Connect Index 
Index Methodology  The index aims to reflect the overall performance of the 50 leading companies in various industries in China’s A-shares (within the scope of Stock Connect). 
Underlying Exposure  China mainland A shares market
ETF Replication Method   Physical Replication. The ETF is a Feeder Fund, and will primarily invest its Net Asset Value in the mainland-listed China Universal MSCI China A50 Connect ETF 
Exchange Listing  Singapore Exchange Limited (SGX) 
Base Currency  SGD 
Trading Currency 

Primary : SGD  

Secondary : USD 

Launch price  S$ 1.000 per unit 
Investment Product Type  Excluded Investment Product (EIP) 
Board lot size  1 unit 
Management Fee 

Management Fee 0.01% p.a.  

(master ETF management fee 0.50% p.a.) 

Manager    Phillip Capital Management (S) Ltd 
Investment Advisor  China Universal Asset Management (Hong Kong) 
Designated Market Makers  Phillip Securities Pte Ltd 
Participating Dealer 

Phillip Securities 

Others TBC 

Custodian and Administrator  BNP Paribas, acting through its Singapore Branch 

Contact your trading representative or visit your nearest Phillip Investor Centre for further assistance. 

Alternatively, you can email us at to find out how you can participate in this initial offer. 

For more information on how to transfer funds to your POEMS account, please visit 

For more information about ETFs, please visit 

Past Events

Unlock China's Market Potential: Why This ETF Outshines Its Competitors

精准出击, 投资中国50高手

Date/Time Title Venue
5 Mar, Tue

Strike with Precision, Invest in China’s 50 Leading Companies

Tan Teck Leng | Deputy Chief Investment Officer | Phillip Capital Management

Raffles City Tower, 250 North Bridge Road Raffles City Tower #06-00 Singapore, 179101
5 Mar, Tue

Strike with Precision, Invest in China’s 50 Leading Companies

Tan Teck Leng | Deputy Chief Investment Officer | Phillip Capital Management

7 Mar, Thu

精准出击, 投资中国50强企业

乐无穹 | 基金经理 | 汇添富基金 & 姜昕宏 | 业务拓展 | 辉立资金管理有限公司

8 Mar, Fri
07:00 PM – 08:00 PM

Strike the precision, Investing in China’s 50 leading companies

Tan Teck Leng | Deputy Chief Investment Officer | Phillip Capital Management

SGX Auditorium, Level 2, SGX Centre 1, 2 Shenton Way, Singapore 068804
11 Mar, Mon
Strike the precision, Investing in China’s 50 leading companies
Mr Tan Teck Leng | Deputy Chief Investment Officer | Phillip Capital Management

Terms and Conditions

  1. The subscription period for this ETF is from 4 March 2024, Monday at 9am to 13 March 2024, Wednesday at 5pm 
  2. The online subscription will close on 13 March 2024 at 5pm. No new applications, amendments, or withdrawals are allowed after this deadline. 
  3. Six types of accounts namely, Cash Plus, Cash Management (KC), Prepaid (CC), Custodian (C), Margin (M) and Share Financing (V) accounts are eligible to subscribe for this ETF. 
  4. An additional transfer fee charge of SGD 10 (subject to GST) per application for Cash Management Accounts will be applicable. The transfer fees will be waived for subscription of 5,000 units and above.
  5. Cash Trading Accounts (T) are not eligible to participate in this subscription. 
  6. Only one application is allowed per account. 
  7. Each ETF unit is priced at SGD1 and the minimum order quantity is 1,000 units, with an incremental order size of 1,000 units. 
  8. There are zero commission fees. 
  9. The total amount payable is denominated in SGD. The settlement currency will be in SGD. 
  10. Sufficient funds (including transfer fee and GST) must be present in the client’s trading account by 13 March 2024 at 5pm 
  11. Applications will be rejected if the account does not have or reflect sufficient funds after 13 March 2024 at 5pm. 
  12. ETF units will be credited to the clients’ CDP or clients’ sub-account with Phillip Securities Pte Ltd by 20 March 2024. 
  13. Clients will receive the full allotment of the number of ETF units that they subscribe to. 
  14. Clients can start trading the ETF units when the ETF is listed on SGX on 20 March 2024 at 9am.  

Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you


This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  


Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066