Value Partners' Shariah China A-shares ETF makes debut on Main Market


Value Partners Group Ltd was co-founded by Datuk Seri Cheah Cheng Hye - China Daily

KUALA LUMPUR: Value Partners Group Ltd has successful listed the VP-DJ Shariah China A-Shares 100 ETF, the world’s first A-share exchange traded fund (ETF), on Bursa Malaysia.

The Shariah China A-Shares ETF debuted on the Main Market at an initial issue price of RM2 per unit.

Value Partners co-founder, co-chairman and co chief investment officer Datuk Seri Cheah Cheng Hye said the Shariah China A-Shares ETF adopts a Shariah-compliant feature and specialises in investing in securities in China.

"We are very grateful to Bursa Malaysia for providing the platform, and we hope it will become a global centre for Shariah-compliant products to invest in Chinese securities,” he said at the virtual listing ceremony today.

The Shariah China A-Shares ETF was officially launched on July 12, 2021 and is managed by Value Partner Group’s wholly-owned subsidiary, Value Partners Asset Management Malaysia Sdn Bhd.

Cheah said the ETF provides investors exposure to Shariah-compliant stocks within the China A-Shares equity universe.

"As the investment appetite of Malaysian investors continues to evolve, various instruments at a cheaper cost with quick access will continue to play an important part in investor's portfolio construction.

"As such, Bursa Malaysia will continue to play a pivotal role in providing this access for investors via ETFs, such as the Value Partners Shariah China A-Shares ETF,” he said.

Meanwhile, Bursa Malaysia Bhd chief executive officer Datuk Muhamad Umar Swift, in his welcoming speech, said today’s listing will provide the opportunity to boost the ETF market in Malaysia.

"To capitalise the positive trend, the exchange would continue to take proactive steps to enhance our ecosystem to support the development and growth of new ETF products,” he said.

This, he said, includes broadening awareness and visibility of ETFs among investors, as well as expanding distribution channels to make investing in ETFs more accessible and convenient.

"The continued support from regulators and policymakers, through initiatives such as the five-year extension of stamp duty exemptions for ETFs announced in Budget 2021, will play a vital role in improving the liquidity and trading of ETFs in the domestic market,” he said.

Globally, Bursa Malaysia continues to observe the growing popularity of ETFs among investors, he said, adding that ETFs are favoured due to its ease of accessibility, low-cost diversification and broad range of trading opportunities.

Since its debut in the early 1990s, the global market for ETFs has seen tremendous growth, with assets under management expected to exceed RM36.9 trillion by 2022. - Bernama

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