CSOP Debuted World’s Largest Chinese Pure Government Bond ETF in Singapore

Investment News 23 Sep 2020

OP Financial Limited (“OP Financial”) and China Southern Asset Management Co., Ltd jointly founded CSOP Asset Management Limited (“CSOP”) in 2008.  As at 31 March 2020, OP Financial owned 22.5% issued shares of CSOP, the carrying value of which was HKD95.02 million.

 

Launched by CSOP Asset Management Pte.Ltd., ICBC CSOP FTSE Chinese Government Bond Index ETF (the “ETF”), the world's largest Chinese pure government ETF, was listed on Singapore Exchange ("SGX") on 21 September 2020 (Ticker:USD counter: CYB/SGD counter:CYC). As the first SGX-listed ETF investing directly in China's onshore bond market, the ETF has ICBC Wealth Management Co.,Ltd and ICBC Asset Management (Global) Company as its investment advisors.

 

ICBC CSOP FTSE Chinese Government Bond Index ETF adopts a representative sampling strategy to replicate as closely as possible the performance of the FTSE Chinese Government Bond Index (CGBI) to achieve its investment objective. Aiming to provide investors with access to the fast-growing China onshore bond market,  the ETF has attracted a number of institutional investors with an initial asset under management (AUM) of US$676 million, making it one of the ETFs with a significantly large initial size on SGX and also the world’s largest Chinese pure government bond ETF.

 

As the second largest bond market in the world following the US, China’s onshore market has become too important to ignore and the size of it has already reached USD15 trillion[1]. As at August 2020, foreign institutions held more than RMB2.8 trillion (roughly USD400 billion) of onshore Chinese bond, which was 4 times more than the amount held in 2015. With China further opening up its financial market, its onshore bond market presents increasingly attractive opportunities to global investors. Meanwhile, once the Chinese onshore bonds are included in the three major indices, there is no doubt that it will attract a larger scale of captial inflows into China’s onshore bond market. Under this circumstances, it is deemed a good timing to launch the ICBC CSOP FTSE Chinese Government Bond Index ETF for global investors to capture the investment opportunities of China’s onshore bond market and achieve a more  diversified asset allocation and stronger investment return.

 

CSOP Asset Management Pte. Ltd., which was founded in 2018, is a subsidiary of CSOP and possesses industry-leading expertise and experience in ETF management, while its parent company, CSOPis a leading ETF issuer in Asia and has been leading the market in product issuance and innovation since its inception  in 2008. As the first SGX-listed ETF launched by CSOP, ICBC CSOP FTSE Chinese Government Bond Index ETF is a significant milestone in CSOP’s product issuance and marketing development.

 

Mr. Zhou Yi, Chairman of CSOP commented, “We are very glad to bring our first SGX-listed ETF product to global investors. ICBC CSOP FTSE Chinese Government Bond Index ETF is designed to help capture the investment opportunities brought by the booming China onshore bond market in view of the market discussion of the potential inclusion into the global indices.”

 

Ms. Ding Chen, CEO of CSOP added, “We believe this China-themed fixed income ETF with relatively low cost, easy access and diversified bond holdings will suit the local investors’ demand of seeking for a relatively stable yield.”  

[1] As at August 2020.


About CSOP

Founded in 2008, CSOP was the first offshore entity set up by a regulated Chinese asset manager. CSOP focuses on investment into China’s capital markets through issuing and managing public and private fund products globally, and also provides investment consulting services for investors in Asia and throughout the world. In addition, CSOP is best known as an ETF leader in Asia. As at 31 July 2020, the total AUM of CSOP was USD8.2 billion.

 

About OP Financial (1140.HK

    

OP Financial Limited (1140.HK), listed on the main board of the Stock Exchange of Hong Kong Limited, is a cross-border and cross-sector investment company with strong capability of investment, financing and industry consolidation holding its portfolio covering listed and unlisted companies in multiple sectors. OP Financial builds its cross-cycle portfolio flexibly based on different holding period and strategy, including long-term core holding, medium-term PE/VC and short-term arbitrage, striving to create diversified and steady returns for shareholders.

 

Disclaimer

This document, and the website of OP Financial Limited   (http://www.opfin.com.hk/) have not been reviewed by the Securities and Futures Commission of Hong Kong. This document is solely for information purposes and is not intended as an offer, a solicitation of offer or a recommendation, to deal in shares of securities or any financial instruments. Past performance and the predictions, projections, or forecasts on the economy, securities markets or the economic trends of the markets are not necessarily indicative of the future or likely performance of OP Financial, CSOP, any products managed by CSOP. Information herein is believed to be reliable at time of publication but OP Financial and CSOP do not warrant its completeness or accuracy and are not responsible for error of facts or opinion nor shall be liable for damages arising out of any person’s reliance upon this information. Any opinion or estimate contained in this document may subject to change without notice. This document may not be published, circulated, reproduced or distributed without the prior written consent of OP Financial or CSOP.

 

Index Provider Disclaimer

The ICBC CSOP FTSE Chinese Government Bond Index ETF (the “ETF”) has been developed solely by CSOP Asset Management Pte. Ltd. The ETF is not in any way connected to or sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). FTSE Russell is a trading name of certain of the LSE Group companies. All rights in the FTSE Chinese Government Bond Index (the “Index”) vest in the relevant LSE Group company which owns the Index. FTSE® is a trade mark of the relevant LSE Group company which own the Index and is used by any other LSE Group company under license. The Index is calculated by or on behalf of FTSE International Limited or its affiliate, agent or partner. The LSE Group does not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Index or (b) investment in or operation of the ETF. The LSE Group does not accept any liability whatsoever to any person arising out of the use of the ETF or the underlying data. The LSE Group makes no claim, prediction, warranty or representation either as to the results to be obtained from the ETF or the suitability of the Index for the purpose to which it is being put by CSOP Asset Management Pte. Ltd.