To The Moon

Weekly Performance Checkpoint

【 $CSOP S-REITs INDEX ETF(SRT.SI)$ 】

• SRT’s fall was primarily due to industrial and office REIT by subsectors as well as MINT, FLT and CLINT. CLINT fell after Temasek sold its shares. 

【 $CSOP US Dollar Money Market ETF Unlisted Share Class P(HK0000503836)$ 】

• Last week, headline CPI and the core CPI both increased by 0.3% MoM in November, slightly below JPM's prediction. The core basket had unexpected variations, with owner's equivalent rent and tenant's rent lower than anticipated, while hotel prices surged beyond expectations.

• This has slightly shifted the odds in favor of Fed cutting rates at the December meeting despite sturdy core CPI might still cause concern that disinflation has stalled.

• We expect CSOPUMM to continue to deliver stable yield in the near term. As of 20241213, the fund has net yield at 4.54%. ^

Source: CSOP, JPM and Bloomberg as of 20241213. ^ 7-day net yield is calculated based on calendar days and NAVs in 5-decimal

【$ICBC CSOP CGB ETF SGD(CYC.SI)$ $ICBC CSOP CGB ETF US$D(CYB.SI)$ 】

• YTD as of 20241212, the CYC/CYB rose +6.77% in CNY and gained +4.26% in USD*.

* CYC/CYB/CYX USD NAV is converted based on benchmark FX, subject to rounding error

Global Market Outlook

【CN】A "Moderately Accommodative" Monetary Policy

• Dec 9 Politburo meeting: New policy rhetoric includes "extraordinary" countercyclical measures, a "moderately accommodative" monetary policy stance, "more proactive" fiscal policy, "actively" promoting consumption, stabilizing "housing, property and stock markets", "revitalizing market expectations", "comprehensively" expanding domestic demand, and managing risks associated with "external shocks".

• US 60% across-the-board tariffs are expected to reduce China's 2025 economic growth by 2%-2.5%

• The actual impact is expected to be mild due to a shift in exports to emerging markets, orderly depreciation of the RMB due to tariff increases, and macro support measures boosting consumption, non-property investment and broad market sentiment; tail risks to economic growth and Chinese credit have been reduced.

• CGB intermediate maturities continue to be favored due to the low correlation between China's onshore central government bonds (after FX hedging) and US Treasuries, and the good rolling yields from FX forward hedging.

• China's 10-year bond yield fell below 0.5% in early December. 2%, and Treasury yields continue to fall as the People's Bank of China increases liquidity easing, including Treasury bond purchases and reverse repo operations.

• There is room for further rebound in Chinese interest-bearing bonds because: (1) China's real interest rates are still high; (2) policy rates and bank reserve requirements are expected to be lowered in the next 6 months to ease trade uncertainties; and (3) the People's Bank of China will maintain ample interbank liquidity.

【SG】S-REIT Outlook

• Industrial REITs (Positive): Sector is seeing increased rents and occupancy rates, and with lower costs, rental reversions should improve earnings. As interest rates fall, these REITs, with their diversified portfolios and focus on high-performing markets, are anticipated to actively acquire and rejuvenate portfolios for further earnings growth.

• Office REITs (Neutral): Despite market slowdown concerns, the sector remains robust with steady occupancy and rising rental rates in Singapore, especially for Grade A offices in CBD. With easing cost pressures and improving conditions in Australia, lower interest rates could further alleviate balance sheet and valuation pressures.

• Retail REITs (Neutral): Sector is backed by strong fundamentals, with limited supply supporting near-full occupancy across SREIT malls. As pandemic-period rents end, high-single-digit positive reversions are expected for both suburban and central leases, with tenant sales remaining strong. FCT and LREIT are particularly promising, despite potential outflows for FCT in 2H25 with RTS completion.

• Hospitality REITs (Negative): Sector is experiencing limited organic growth due to a high operating climate and increased supply, despite recovering tourist arrivals, particularly from China. However, shorter stays and downtrading by Chinese tourists may offset this, leading to modest 0-3% RevPAR growth, mainly driven by occupancy rather than rates.

【US】Rate Cut Bets Have Risen

• The market now predicts a softening of headline CPI inflation to 2.58% in 2025, close to JPM's forecast.

• Furthermore, according to November’s CPI and PPI, Bloomberg Economists anticipate core PCE deflator published later this month will rise 0.13%, slower than in October, but this will not impact the Fed’s December meeting which will happen before the PCE inflation print release.

• Rate cut bets have risen.

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.[KS1]