CSOP CSI STAR and CHINEXT 50 Index ETFseeks to replicate the performance of 50 securities of listed companies from SSE STAR market and SZSE ChiNext market as constituents. Through this ETF, investors will have the opportunity to diversify into nine emerging industries including new generation information technology, high-end equipment manufacturing and new energy amongst others.
Why CSOP CSI STAR and CHINEXT 50 Index ETF?
- Easy Access to China’s Hard-Tech Leaders- STAR50 & CHINEXT invest in 9 major technological development directions to help investors fully grasp growth opportunities of China’s technology leaders that benefit from China’s high-quality growth era.
- Huge potential in growth– Although the level of science and technology innovation and the proportion of research expenditure to GDP have been rising in recent years, it is still lower than those of developed countries in the 1990s, implying huge room for growth in the field of science and technology.
- Strong growth in profits -Net profit growth of STAR and CHINEXT companies reached 59% and 43% respectively in 2020; the highest record since 2010. In Q1 2021, the net profit of STAR and CHINEXT companies also further increased by 216% and 114% respectively. (source: CSOP)
Overview of underlying markets
STAR Market | CHINEXT Market | |
Classification | “Hard technology” companies that are in line with National Strategies, represent Key Breakthroughs, and have high Market Recognition. | Growth-focused companies with generally smaller market capitalization. Supports the integration of traditional industries with new technologies, industries, and business models. |
Industries | Only firms that meet certain scientific and technological criteria. | Innovative enterprises in both traditional and new business segments. Comprises of F&B, Software, Semiconductors, and Healthcare companies. |
Listing Criteria | Lower requirements for market capitalization, revenue, and earnings. | Higher financial requirements and greater profit stability requirements. |
(Source: CSOP)
Investors may visit thislinkto sign up for the upcoming seminar on14 December 2022, 7.00pm and find out more about the opportunities that this listing presents.
You may also view the playback live stream of the ETF listing ceremony.https://www.facebook.com/SGX.SingaporeExchange/videos/8628496403858066/
Feel free to reach out if you have any question on this latest ETF addition to our ETF market.
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