OCBC Securities, Lion Global to launch SGX’s first tech-focused ETF

OCBC Securities and Lion Global Investors are planning to launch Singapore's first tech-focused ETF on 10 December, tracking the Hang Seng TECH Index, which comprises the Hong Kong's 30 largest listed technology companies, including Tencent, Alibaba, Meituan and Xiaomi.

The new ETF will offer easy access to Singapore investors to Hong Kong-listed technology themed stocks, and be available in both SGD and USD denominations on Singapore Exchange (SGX). Investors will be allowed to buy lots of just 10 units at a time, which amounts to as little as SGD 20 per trade.

"This ETF is designed to capture the growth of Chinese TECH-themed companies, including those 'homecoming' companies seeking a secondary listing on Hong Kong Stock Exchange (HKEX) as well as companies looking to list on HKEX," OCBC Bank said in a statement.

OCBC Securities anticipates that the ETF will see significant demand, noting that trading volume for Hong Kong-listed equities on its platform has grown by more than 30 percent compared to the same period last year. Chinese technology companies consistently rank among the top traded counters. The brokerage points to a surge in interest in ETFs among retail investors, with trading volumes in the first 10 months of 2020 already tripling 2019's full year figures.