SINGAPORE: Singapore Exchange (SGX) has welcomed the listing of Lion-OCBC Securities Hang Seng TECH ETF with assets under management of S$64 million, providing efficient access to the fastest-growing Chinese technology companies as retail demand for exchange-traded funds (ETFs) reaches a new high.
The Lion-OCBC Securities Hang Seng TECH ETF is the second ETF listing by Lion Global Investors following Lion Phillip S-REIT ETF, its first pure-play S-REIT ETF listed in 2017.
The ETF covers leading technology-themed companies across the information technology, industrials, healthcare, consumer and financials sectors, including Alibaba Group, JD.com, Meituan Dianping, Tencent and Xiaomi.
The listing of the ETF comes on the back of record high investor interest in ETFs, with retail turnover of equities ETFs quadrupling to S$570 million in the first 11 months of 2020, compared to the same period last year.
The strong demand for ETFs in Singapore is in part fuelled by the growth in ETF investing platforms such as regular savings plan providers, including OCBC’s Blue Chip Investment Plan (BCIP) and robo advisors.
Gerard Lee, Chief Executive Officer at Lion Global Investors, said, “The Lion-OCBC Securities Hang Seng TECH ETF allows investors in Singapore a convenient and cheap way of investing in a secular trend.
Other than investing in the merits of companies at the forefront of disruption and innovation, this ETF gives investors an easy avenue to express their views on geopolitical shifts, as more tech champions list in Asia. The Lion-OCBC Securities Hang Seng TECH ETF will allow investors to invest and trade in a security denominated in SGD and USD. We are confident that this ETF will have high trading volume and liquidity.”
Wilson He, Managing Director of OCBC Securities, said, “A key strategic focus of OCBC Securities is bringing foreign investments opportunities to local investors. In recent years, there is an increased interest in the Chinese tech-themed companies and these companies have consistently been our top traded counters in global markets.
It is no secret that investors are definitely keen in these technology companies of great potential. With the listing of Lion-OCBC Securities Hang Seng TECH ETF on SGX, local investors will benefit by trading in a familiar environment. This is also an opportunity for investors to gain access to rapidly growing Chinese technology giants in an easy and affordable manner.”
Michael Syn, Head of Equities at SGX, said, “We congratulate Lion Global Investors and OCBC Securities on the listing of the first ETF under their strategic partnership. We believe that investors will be well-served as the ETF harnesses the respective firms’ expertise and synergies within the OCBC group.
A strong addition to SGX’s multi-asset platform, this latest product is a timely portfolio diversification tool for investors looking to benefit from digital transformation trends, while managing risks and opportunities in an evolving and increasingly polarised global technology landscape.”
