A-shares have been dominating the headlines recently! How can Singaporean investors participate? Even without an A-share account, you can still invest in A-shares.

In the past month, A-share performance has been quite impressive. At the end of September, the lowest point was 2600 points, skyrocketing to 3600 points. Then it began to adjust in a volatile manner. The sudden surge was due to a series of government policies stimulating the market, combined with a significant monetary injection. However, the foundation of the surge is not simply based on policies, the underlying logic is that valuations below 3000 points are cheap enough. With the low valuations as the basis, the stimulus has taken effect. The investment targets introduced later can be seen at the current valuation level of A-shares.

For local investors in Singapore, if you do not have an A-share account, you can only watch from the sidelines. However, there are actually two mature methods for A-share investments.

Today, let's first understand the investment approach of the first method:

There are not many products available for direct A-share investments on the Singapore Exchange, they can be counted on fingers. In 2022, the first cross-listed product ETF between China and Singapore—SCY emerged. Since 2023, the CEO of the SGX started promoting China-Singapore connectivity, and in the past two years, the interaction between SGX and the mainland has gradually increased.

If there are too many investment tools in the market, and you only want to know a few major ones, then these two ETFs are the ones we should remember now.

From the chart below, it can be seen intuitively that the performance of the dividend index is very stable. After experiencing the bursting of the stock market bubble in 2015 and adjusting, it has steadily risen.

The current dividend yield is 5%+, and the dividends in recent years have been maintained at around 5%.

The sse dividend index selects 50 securities listed on the Shanghai Stock Exchange with high cash dividend yields, relatively stable dividends, and a certain scale and liquidity as index samples to reflect the overall performance of high-dividend securities in the Shanghai market.

The top ten weights of the sse dividend value index are: china shenhua energy (3.23%), chongqing rural commercial bank (2.64%), shanxi coal international energy group (2.63%), yankuang energy (2.58%), agricultural bank of china (2.56%), bank of communications (2.53%), shandong hi-speed (2.46%), bank of beijing (2.43%), bank of shanghai (2.36%), bros eastern co.,ltd (2.36%)

Total percentage is 25.78%, covering industries such as banks, coal, transportation, textiles, etc., with most dividend yields above 5%, representing high-dividend assets.

The specific industry classification breakdown is as follows:

Finally, one more important point about SHD: CSOP's SHD does not simply replicate the index, but significantly outperforms the SSE Dividend Index in the long term.The graph below clearly shows that SHD has consistently outperformed the Dividend Index in the long term. Therefore, the return on investing in SHD significantly exceeds the return shown for the Dividend Index above.

It is also a fund issued by CSOP and Southern Investment, the CSOP CSI STAR and Chinext 50 Index ETF (code: SCY) listed on the Singapore Exchange (SGX). Unlike SHD, SCY aims to track the CSI STAR & ChiNext 50 Index compiled by China Securities Index Company.

Tracking the GEM'S SSE STAR Market Index, it is linked to the Double Creation ETF (SZ:159780). (GEM and STAR Market are collectively referred to as Double Creation).

The index includes the 50 most promising companies from the Shanghai Stock Exchange (STAR Market) and the Shenzhen Stock Exchange (ChiNext), covering leading enterprises in emerging industries such as hard technology, new energy, information technology, and biomedical. Through SCY, investors can access these high-growth companies driven by innovation and supported by national strategies.

Focus on the innovation field, selecting China's technology star stocks. Covering nine major directions of technological innovation in China, helping investors fully grasp the growth opportunities of China's technology leaders. The composition ratios of each field are as follows:

Post-pandemic, due to the impact of the Chinese economic environment, the valuations of technology companies have been declining, hitting rock bottom even after the rebound in October. In the future, if the Chinese economy rebounds from the bottom, tech stocks will play a pioneering role, leading the way upward.

The top ten weighted stocks account for almost half of the fund's position, 54.15%.

They are the leaders in China's technology subsectors, as detailed in the following chart:

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CSOP CSI STAR and ChiNext 50 Index ETF (SCY): Tracks the CSI STAR & ChiNext 50 Index, focusing on Chinese technology and innovation companies, mainly covering large technology companies on the STAR Market and the ChiNext board.

CSOP Huatai-PineBridge SSE Dividend Index ETF (SHD) is an ETF listed on the Singapore Exchange that mainly tracks the SSE Dividend Index. This index includes 50 high-dividend quality companies from the Shanghai Stock Exchange, covering multiple industries such as energy, finance, industry, and materials. Due to the high dividend yield of its component stocks in the China A-share market, this ETF is suitable for investors who prefer stable income.

Phillip-China Universal MSCI China A 50 Connect ETF: Tracking the MSCI China A 50 Connect Index, investing in large and medium-sized companies in the Shanghai and Shenzhen markets.

NikkoAM-StraitsTrading MSCI China Electric Vehicles and Future Mobility ETF: Investing in the Chinese electric vehicle and future mobility sectors based on the MSCI China Electric Vehicles and Future Mobility Index.

UOBAM Ping An ChiNext ETF: Focuses on the growth companies listed on China's Shenzhen ChiNext board, investing in innovative and high-growth companies.

ICBC CSOP FTSE Chinese Government Bond Index ETF: Primarily invests in the Chinese government bond market, providing a channel for investors seeking fixed income.