To The Moon

$SGX(S68.SI)$ monthly data show that SGX FTSE China A50 Index Futures traded 496,023 lots in August, equivalent to roughly US$7.2 billion in notional value—up 66% year-on-year and the highest level in six months.

SGX Group reports higher derivatives and securities volumes in August, up 11% and 17% y-o-y respectively

The surge coincides with reviving sentiment toward China and a global re-allocation into renminbi assets. As the most liquid offshore hedge for China A-shares, the A50 contract has become the go-to vehicle for asset managers, hedge funds and quant traders to express a “China view” quickly.

Three demand-side drivers

A-share rebound opens a beta window

• Official manufacturing PMI rose to 49.4 in August; Caixin PMI climbed back above 50, fuelling hopes of further policy easing.

• North-bound Stock Connect recorded net buying of more than RMB 50bn of A-shares—the strongest month since 2024.

• $Goldman Sachs(GS)$ , $Morgan Stanley(MS)$ and others upgraded China, prompting offshore quant funds to follow suit.

Hedging and arbitrage flows reinforce each other

• On-shore CSI 300 and CSI 1000 futures have traded at a persistent premium; spread traders use the A50 contract to lock in the cross-border basis.

• Short-covering in US-/HK-listed China names is being hedged with A50, lifting combined turnover in “A50 + HSTECH” baskets.

Outlook: four variables to watch

• Policy surprises: if growth, property or consumption stimulus exceeds expectations, A50 could test technical resistance at 14,800–15,000.

• Fed path: a clearer rate-cut signal at the September FOMC and a weaker dollar could accelerate carry-trade inflows into renminbi assets.

• Basis structure: with the A50 futures curve still 3–4% in contango, any shift to backwardation would attract long-replacement demand.

• Index rebalance: FTSE’s quarterly review on 23 September may add names such as WuXi AppTec and Innvista, creating passive re-weighting flows.

Here is a practical “menu” for global investors who want China exposure without opening an onshore account.

All instruments below are listed on Singapore Exchange (SGX) and clear through the same brokerage you already use for Singapore stocks.

1. Large-cap A-shares in one ticket

• UOBAM FTSE China A50 ETF – SGX tickers $UOBAM FTSE CN A50 S$(JK8.SI)$ / $UOBAM FTSE CN A50 US$(VK8.SI)$ – Tracks the 50 most liquid A-shares (Kweichow Moutai, CATL, BYD, Ping An, etc.). – Expense ratio 0.45%; quarterly rebalance; board-lot 10 shares. – Perfect proxy for “China blue-chip beta” and the underlying basket of the famous SGX futures.

2.The futures contract that institutions actually trade

• SGX FTSE China A50 Index Futures – $China A50 Index - main 2509(CNmain)$ – USD 1 × index point (≈ USD 14,000 notional at 14,000 index level). – 17-hour trading day (T+1 session covers New-York & early London hours). – Margin ≈ 7%; deep book with average bid-ask < 5 ticks during Asian hours. – Use for: directional bets, overnight hedge, spread vs HK-listed A-share ETFs.

3.MSCI version with Connect exposure

• Phillip-CUAM MSCI China A50 Connect ETF – $PHIL-CU MS CHINA A50 S$(MCN.SI)$ / $PHIL-CU MS CHINA A50 US$(MCS.SI)$ – Feeder into the Shanghai-listed parent ETF; north-bound Stock Connect quota already embedded. – Equal-sector capping → lighter financial weight than FTSE A50. – Since listing Mar-2024: +6.6% total return to May 2025 .

4. Growth & small-cap sleeves

• UOBAM Ping An ChiNext ETF – $UOBAM PINGAN CHINEXT S$(CXS.SI)$ / $UOBAM PINGAN CHINEXT US$(CXU.SI)$ – 100 largest ChiNext names (CATL 19%, East Money 8%, Mindray 4%). – Expense 1.39%; high beta to China’s “new economy”.

• CGS Fullgoal CSI 1000 ETF – $CGS FG CSI1000 S$(GRO.SI)$ / $CGS FG CSI1000 US$(GRU.SI)$ – 1,000 small-/mid-caps; pure domestic-demand story; expense 1.96%.

5. Dividend & low-volatility factor

• CSOP Huatai-PineBridge SSE Dividend ETF – $CSOP DIV ETF S$(SHD.SI)$ – 50 highest-yielding Shanghai stocks; dividend-weighted; current indicated yield ≈ 5.8%.

6.Add currency control if you need it

• SGX lists USD/CNH and CNH/USD futures (tickers UC & CY). Pairing a long A50 position with short CNH futures immunises the FX leg while keeping equity upside.

How to put it together – three example builds

• A. “I just want China beta”——100% $UOBAM FTSE CN A50 S$(JK8.SI)$ (or CN futures for leverage).

• B. “Bar-bell” (core + growth)——60% $UOBAM FTSE CN A50 S$(JK8.SI)$ + 25% $UOBAM PINGAN CHINEXT S$(CXS.SI)$ + 15% $CGS FG CSI1000 S$(GRO.SI)$ .

• C. “Income + hedge”——50% $CSOP DIV ETF S$(SHD.SI)$ + 30% $UOBAM FTSE CN A50 S$(JK8.SI)$ + 20% short CNH futures; yield cushions draw-downs.

Key dates & catalysts to watch

• 23 Sep ’25 – FTSE & MSCI quarterly review: potential adds include Hygon InfoTech, Zijin Mining.

• 30 Sep ’25 – China manufacturing & service PMI (pre-Festive quality).

• Q4 ’25 – U.S. election & Fed path → CNH volatility → A50 gap risk.

Bottom line

SGX now offers a full China toolkit: a liquid benchmark future, low-cost A50 ETFs, thematic/growth plays and even dividend factor – all tradeable in SGD/USD during Singapore hours. Pick one core tracker, layer in satellites that match your risk budget, and hedge FX or tail events with SGX CNH futures if necessary.

Read more from @Tiger_Academy

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