With the China government gradually moving towards the liberalisation of financial markets, gaining access to the onshore China market has become relatively easier as compared to the past. Following the inclusion of China government bonds and policy bank bonds into major bonds indices, including Bloomberg Barclays Global Aggregate Index in Apr 2019, the demand for Chinese bonds from investors has also seen a strong growth in recent times and further inflows can also be expected, especially from foreign institutional investors.
Now, with the pending listing of ICBC CSOP FTSE Chinese Government Bond Index ETF in September on SGX, retail investors based in Singapore can now participate in this growing demand for China bonds via the local bourse.
Introducing the ICBC CSOP FTSE Chinese Government Bond Index ETF
The ICBC CSOP FTSE Chinese Government Bond Index ETF offers investors easy access to CNY-denominated fixed rate book entry government bonds issued in Mainland China in affordable units.
The ETF aims to replicate the performance of the FTSE China Government Bond Index (CGBI).
Key ETF Information
|
Benchmark |
FTSE Chinese Government Bond Index |
|
Number of holdings |
81 |
|
Indicative Market Value (CNY bn) |
10,322.09 |
|
Coupon |
3.25% per annum |
|
Credit Quality |
A1/A+ by Moody’s/S&P |
|
Indicative Yield[1] |
2.98% |
|
Indicative Duration (Years) |
5.7 |
|
Composition |
Includes fixed-rate book-entry government bonds issued in Mainland China. Excludes zero-coupon bonds, saving bonds, bonds with maturity greater than 30 years from issuance, and bonds issued prior to January 1, 2005. |
|
10 largest constituents in the index (as at 31 August 2020) |
No. Stock Name Weighting (%) 1. CGB 3.19 04/11/24 2.86% 2. CGB 3.29 05/23/29 2.78% 3. CGB 3 1/4 06/06/26 2.76% 4. CGB 2 3/4 08/08/22 2.68% 5. CGB 3.12 12/05/26 2.48% 6. CGB 3.39 03/16/50 2.45% 7. CGB 2.2 02/13/22 2.42% 8. CGB 3.13 11/21/29 2.39% 9. CGB 1.99 04/09/25 2.35% 10. CGB 2.94 10/17/24 2.22% |
|
Dividend Distribution Frequency |
Semi-annually |
|
Manager / Trustee |
CSOP ASSET MANAGEMENT PTE. LTD. / HSBC Institutional Trust Services (Singapore |
|
Management Fee |
0.25% - 0.30% p.a. of Net Asset Value |
[1] As represented by index data.
ETF Listing and Trading Information
|
Listing Date |
21 September 2020 on the Singapore Exchange |
|
Lot Structure |
10 units per lot |
|
SGX Trading Name & Stock Code |
Primary Currency: ICBC CSOP CHN GOV S$ (CYC) ICBC CSOP CHN GOV US$ (CYB)
|
Application Information
IOP Open Date | 10 September 2020 |
IOP Application Close Date | 16 September 2020 12pm |
Minimum Application size | 100 units and in multiples of 100 units |
Subscription Price ICBC CSOP CHN GOV S$ (CYC) ICBC CSOP CHN GOV US$ (CYB) | S$13.85 per unit[1] US$10.00 per unit[2] |
[1] Based on an indicative USD:SGD rate of 1.385.
How to Buy
1. Clients to fund their respective Multi-Currency Cash Account for the total subscription amount including the processing fees and GST of 7%.
2. Login to FSMOne.com and proceed to subscribe online:
· Select Live Trading > Stocks > Subscribe for IPOs
· Indicate the quantity of shares
· Read and acknowledge the declaration
· Key in password and click submit
3. Upon the completion of the IOP subscription, clients will receive an acknowledgement email regarding the IOP subscription order.
4. Upon the completion of the placement allocation, we will notify clients of the final allocation results.
5. FSMOne will send clients a subscription confirmation email once the details are confirmed by our dealers.
6. The allotment for this issue will be in full, subject to receipt and clearance of subscription monies. There will be no balloting.
CLICK HERE TO GO TO ETF PRODUCT HIGHLIGHT SHEET
CLICK HERE TO GO TO THE PROSPECTUS
Other important notes:
· IOP subscription fee: 0.08% + GST on the subscription amount
· Please note that after confirming your order placement (with the investment amount in Cash Account), your subscription / application cannot be cancelled.
·
Please note that subscriptions
without the sight of funds in the Cash Account by 12pm on 16 September 2020 (Wednesday) will not be processed.
Terms and Conditions:
1. This offering is open from 10 September 2020 to 16 September 2020. To be eligible, orders must be placed before 12.00pm on 16 September 2020.
2. The subscription must meet the minimum investment amount as set out above.
3. CPFIS-OA, CPFIS-SA, SRS and RSP transactions are not eligible.
4. iFAST reserves the right to amend the Terms and Conditions without prior notification. All matters and disputes will be subject to the final decision of the company.
If you have any questions, please contact our client service hotline at +65 6557 2853.
Find Out More About This ETF
1. Read the article here by iFAST Research Team to learn more about the ICBC CSOP CHN GOV ETF.
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