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April 2024
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Singapore and Shanghai bourses plan ETF link

SGX says demand for China and Singapore equity ETFs “remains strong” in Singapore, with combined asset under management of S$2.9 billion as of April 2023
By Goh Thean Eu   
May 24, 2023

The Singapore and Shanghai bourses plan to launch an exchange-traded fund link.

They have signed an agreement to jointly develop the ETF markets in both countries through a master-feeder fund model, the Singapore Exchange (SGX) says in a statement on May 23, describing it as a move that “further strengthens the connectivity between Singapore and China”.

According to the bourse, demand for China and Singapore equity ETFs “remains strong” in Singapore, with combined asset under management of S$2.9 billion (US$2.16 billion) as of April 2023.

The partnership with the Shanghai Stock Exchange bridges two “rapidly growing ETF markets in Asia and extends the range of ETFs available for listing of feeder funds between China and Singapore”, the SGX says. “The link also facilitates greater collaboration opportunities between issuers in both markets, enhancing investment options for investors.”

The statement does not provide a timeline for the launch of the link, Spokespersons for both bourses did not immediately respond to questions from Asia Asset Management.