New option for investors here to buy China-listed shares

They can access basket of top 50 Chinese A-share firms listed in Shanghai, Shenzhen

- Chor Khieng Yuit

It will soon be easier for Singapore investors to buy a basket of shares in blue chip companies listed in Shanghai and Shenzhen.

A new exchange-traded fund (ETF) being launched by Phillip Capital Management that will list on the Singapore Exchange (SGX) will allow people here to invest in Chinese A-share companies.

Phillip Capital Management said it is registering strong investor interest for its first China-focused ETF as sentiment towards Chinese markets picks up.

The asset management arm of PhillipCapital Group collaborated with China Universal Asset Management to offer the Phillip-China Universal MSCI China A 50 Connect ETF, which is set to list on the SGX on March 20.

Mr Jeffrey Lee, chief investment officer of Phillip Capital Management, told The Straits Times that the ETF already has "investor commitments from various global, regional and mainland China financial institutions".

Global insurance companies and Singapore retail investors have also expressed interest, he added.

The new ETF is known as a feeder in that it invests into the underlying master fund - China Universal MSCI China A 50 Connect ETF, which is listed in Shanghai.

The master-feeder fund model rides on the ETF link set up between the Shanghai Stock Exchange and SGX in May 2023.

SGX established a similar link with the Shenzhen Stock Exchange in 2021.