A Rate Cut This Month Is Not Guaranteed【CSOP Fixed Income Weekly】

Weekly Performance Checkpoint

【SRT】

•      $CSOP S-REITs INDEX ETF(SRT.SI)$ ’s rise was led by office and hotel by subsectors and Suntec REIT, MLT and CLINT by individual REITs. Suntec REIT jumped after property tycoon offered to buy out shares through their investment vehicle after their rise in stake prompted a mandatory takeover under Singapore listing rules, and will be keeping the listing status of the REIT.

【MMF】

• Last week, President Donald Trump has cautioned BRICS countries against creating a new currency or favoring another to replace the US dollar in global trade, threatening to impose 100% tariffs on their goods if they do not comply.

• November’s ISM manufacturing PMI saw upside surprise as it rose to 48.4 (consensus: 47.6) due to surge in new orders.

• However, November services PMI and ISM were disappointing with final November services composite PMI dropped to 56.1, lower than the anticipated 57.0 but higher than October's 55.0. The ISM services composite also fell to 51.2 in November, below the expected 55.7 and previous months' figures, yet consistent with the past 18 months' average. Employment metrics in both PMI and ISM indices also saw a decline in November.

• We expect $CSOP US Dollar Money Market ETF Unlisted Share Class P(HK0000503836)$ to continue to deliver stable yield in the near term. As of 20241206, the fund has net yield at 4.59%. ^

Source: CSOP, JPM and Bloomberg as of 20241206. ^ 7-day net yield is calculated based on calendar days and NAVs in 5-decimal

【CN】

•      Citigroup expressed optimism for China's 30-year government bonds, predicting policy rates may be lowered by 50 basis points next year.

•      Goldman Sachs is optimistic about fixed income exposure of emerging market currencies after hedging, recommending 5-year Chinese government bonds. $ICBC CSOP CGB ETF SGD(CYC.SI)$ $ICBC CSOP CGB ETF US$D(CYB.SI)$ $ICBC CSOP CGB ETF US$A(CYX.SI)$

Global Market Outlook

【CN】800 Billion Yuan Was Injected Into The Money Market

•      The Chinese central bank injected 800 billion yuan into the money market in November via reverse repurchase agreements, aiding liquidity as government bond issuance quickened.

•      The latest official manufacturing PMI exceeded expectations, indicating continued factory activity expansion.

•      From January 2025, the People's Bank of China (PBOC) will include personal current deposits in its M1 statistical caliber.

•      Amid escalating US restrictions on Chinese chips, China banned the export of high-tech and military-use materials like gallium and germanium to the US.

•      Pan Gongsheng, the governor of the PBOC, said that next year, it will continue to adhere to a supportive monetary policy stance and policy orientation. China's Finance Minister Lan Fo'an pledged to address hidden local government debt and expedite bond issuance.

【SG】Singapore’s Q4 Retail Sales Possibly Rise

•      Festive spending, government handouts, and low interest rates could further boost Singapore’s Q4 retail sales, possibly raising revenue for mall owners.

【US】A Rate Cut This Month Is Not Guaranteed

•      San Francisco Fed Bank President Mary Daly stated that while a rate cut this month is not guaranteed, it is still a possibility.

Disclaimer

The investment product(s), as mentioned in this document, is/are registered under section 286 of the Securities and Futures Act (Cap. 289) of Singapore (the “SFA”). This material and the information contained in this material shall not be regarded as an offer or solicitation of business in any jurisdiction to any person to whom it is unlawful to offer or solicit business in such jurisdictions. This document is not to be construed as recommendations to buy/sell any above-mentioned securities, or any securities in the above-mentioned sectors or jurisdictions.

CSOP Asset Management Pte. Ltd. (“CSOP”) which prepared this document believes that information in this document is based upon sources that are believed to be accurate, complete, and reliable. However, CSOP does not warrant the accuracy and completeness of the information and shall not be liable to the recipient or controlling shareholders of the recipient resulting from its use. CSOP is under no obligation to keep the information up to date. The provision of this document shall not be deemed as constituting any offer, acceptance, or promise of any further contract or amendment to any contract. The information herein shall not be disclosed, used, or disseminated, in whole or part, and shall not be reproduced, copied, or made available to others without the written consent of CSOP.

Advice should be sought from a financial adviser regarding the suitability of the investment and/or investment product before making an investment. Investment involves risk. The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not necessarily indicative of future performance. Investor should read the prospectus and product highlights sheet, which can be obtained on CSOP website or authorized participating dealers, before deciding whether to invest. This document has not been reviewed by the Monetary Authority of Singapore.

Index Provider Disclaimer

SRT

The CSOP iEdge S-REIT Leaders Index ETF is not in any way sponsored, endorsed, sold or promoted by Singapore Exchange Limited and/or its affiliates (collectively, “SGX”) and SGX makes no warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the iEdge S-REIT Leaders Index and/or the figure at which the iEdge S-REIT Leaders Index stand at any particular time on any particular day or otherwise. The iEdge S-REIT Leaders Index are administered, calculated, and published by SGX. SGX shall not be liable (whether in negligence or otherwise) to any person for any error in the CSOP iEdge S-REIT Leaders Index ETF and the iEdge S-REIT Leaders Index and shall not be under any obligation to advise any person of any error therein. “SGX” is a trademark of SGX and is used by CSOP under license. All intellectual property rights in the iEdge S-REIT Leaders Index vest in SGX.

CYC/CYB/CYX

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 trademark 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.