Are you ready to stay informed and up-to-date with the latest news on Exchange Traded Funds (ETFs)? If so, look no further! A wave of new ETFs is on the horizon, set to be included in the master-feeder scheme connecting the Singapore and Chinese exchanges. This scheme, launched at the end of 2021, has been met with slow uptake but is now gearing up for a potential turnaround.
Here are some key points to consider as we dive into this exciting development:
- The master-feeder scheme linking the Singapore and Chinese exchanges has seen limited success since its inception.
- Difficulties in forming commercial partnerships and a sluggish market in China have contributed to the slow growth of the scheme.
- Only seven ETFs have been launched on the scheme so far, showcasing the challenges faced by fund firms in both markets.
- The Monetary Authority of Singapore is exploring opportunities to expand the number of ETFs available on the cross-listing scheme, signaling a potential shift in the market.
- Recent market reforms and a resurgence in China’s onshore markets have generated renewed interest from investors and issuers alike.
- The introduction of new ETF products is expected to ramp up in the coming year, with three to four new ETFs anticipated in the first half of 2025.
As we look ahead to the future of the ETF landscape, exciting opportunities are on the horizon. A new emerging Asia ETF is on track to be listed soon, adding to the growing momentum of the Singapore-China link. Investor appetite is on the rise, with significant asset growth seen in recent months.
Wing Chan, from Morningstar, highlights the untapped demand among Chinese investors for offshore exposure, pointing to the potential of the Singapore-China ETF link. Despite challenges in forming partnerships and aligning commercial terms, the market is poised for growth and expansion.
In conclusion, the future of ETFs in the Singapore and Chinese markets is bright. With new products on the horizon and renewed investor interest, the potential for growth and innovation in the ETF landscape is limitless. Stay tuned for further updates and developments in this dynamic market segment.
