Singapore-China ETF Scheme Revamp Expected to Spur Growth in 2025

December 11, 2024-Revamped ETF scheme aims to boost cross-border investment opportunities.
Singapore and China are set to revamp their underused ETF cross-listing scheme in 2025, aiming to boost investor interest and expand market opportunities.

The initiative has seen limited uptake since its launch in 2021, but a recovery in Chinese equities and upcoming reforms signal potential growth.

Launched in 2021, the Singapore-China ETF cross-listing scheme has struggled to gain traction, with only seven ETFs introduced as of November 2024. Challenges include weak investor sentiment toward Chinese equities, logistical complexities, and limited experience in partnerships between fund managers. Recent developments, however, signal a turning point for the initiative.