The mainland China market (A-shares) is trading at low valuations compared to major market peers such as the US, Europe and Japan. Given its growth track record over the past few decades, its relatively low correlation to major equity markets allowing for portfolio diversification, and the abovementioned increased likelihood for the government playing a more active role in boosting the market through various stimulatory and/or supportive policies, it may be a good time to put mainland China A-shares back on investors’ radar.

In late March 2024, Phillip Capital Management partnered China Universal, a leading mainland China fund management firm, to launch our first China ETF, the Phillip-China Universal MSCI China A 50 Connect ETF, which invests in a selection of 50 leading mainland-listed Chinese companies across a range of industries. The ETF has amongst the lowest management fees of China-focused equity ETFs listed on the Singapore Exchange (the ETF has 0.01% management fee).

We invite you to delve deeper into recent events such as regulatory reforms, technological advancements, and geopolitical developments, understanding how they positively influence the Chinese market. Join us on May 23rd, 2024, to know more about the dynamic landscape of the China market. We look forward to seeing you there!