Harvesting China’s Dividend Potential: Lion-China Merchants CSI Dividend Index ETF

Special Promotion

Receive up to S$600* Cash Coupon when you subscribe to the Lion-China Merchants CSI Dividend Index ETF

Get a $12 cash coupon for every $5,000 subscription into Lion-China Merchants CSI Dividend Index ETF. Subscribers will need to fulfil 1 month holding period after the listing date to be eligible for the rewards under the promotion.

*T&Cs apply. More information below.

How to Subscribe?

The Lion-China Merchants CSI Dividend Index ETF will be available for subscription from 10 to 24 March 2025.

Here are the steps to subscribe to the ETF:

1. Log in to Tiger Trade

2. Go to Portfolio > More > IPO > SG

3. Select the Lion-China Merchants CSI Dividend Index ETF IPO and place your Trade order.

Introducing the Lion-China Merchants CSI Dividend Index ETF

China’s equity market is home to numerous large-cap companies with some having stable dividend distribution policies. Many of these firms are leaders in sectors such as financials, energy, and utilities, benefiting from China’s massive consumer base and continued infrastructure development.

Launched by Lion Global Investors in collaboration with China Merchants Fund Management, the Lion-China Merchants CSI Dividend Index ETF (SGX tickers: INC & ICH）aims to replicate the performance of the underlying CSI Dividend Index.

This is great news for Singapore investors as we no longer need to invest in an overseas ETF to gain exposure to China's equity market. Through the SGX-listed Lion-China Merchants CSI Dividend Index ETF, Singapore investors can gain access to China’s high dividend-paying stocks. This is the first ETF tracking the CSI Dividend Index that is available outside Mainland China, allowing investors to buy and sell within the familiar SGX ecosystem.

While local investors are familiar with the Singapore exchange, China’s financial landscape is much more dynamic, with thousands of stocks to choose from. A dividend ETF simplifies the selection process, providing exposure to a diversified basket of China's high dividend-paying companies.

Key Fund Information

Source: Lion Global Investors, 28 Feb 2025

Why Invest in China Dividend Stocks Now?

China presents an attractive long-term growth story for investors. China equities have rallied in 2025, driven by breakthroughs in artificial intelligence (AI), with DeepSeek leading the charge. A recent meeting between President Xi and China's top tech leaders provided another boost to China equities. This meeting signalled clear government support for the private tech sector, dispelling fears of regulatory crackdowns. It suggests that the worst is over and that the government is now working collaboratively with the industry to build an innovative and technologically advanced economy.

While Chinese tech stocks have dominated headlines, dividend-paying stocks have been China’s hidden gems. Over the past four years, the CSI Dividend Index has outperformed CSI 300 (which is China’s national benchmark. The performance gap during this period is striking, with the CSI Dividend Index making 21.4% while CSI 300 losing 16.9%.

Moreover, The CSI Dividend Index posted positive gains in the past 3 out of 4 years, compared to the CSI 300 which only delivered one year of positive returns. All these demonstrate the CSI Dividend Index’s potential, and resilience to withstand market downturns.

Source: Bloomberg, 28 Feb 2025

In addition, as of 28 February 2025, CSI Dividend Index was trading at a P/E ratio of just 7.3x. This is significantly lower than the CSI 300 Index, which was trading at 15.8x, the Straits Times Index (STI) at 12.6x, and the S&P 500 Index at 25.4x.

Source: Bloomberg, China Securities Index, as of 28 February 2025

Source: Bloomberg, China Securities Index, as of 28 February 2025

This undervaluation suggests room for upside potential if the CSI Dividend Index’s valuation goes higher. This will mean investors can enjoy steady dividend payouts while waiting for potential price appreciation.

Why Choose the Lion-China Merchants CSI Dividend Index ETF?

For investors looking to capitalise on China’s high dividend opportunities, the Lion-China Merchants CSI Dividend Index ETF, a collaboration between Lion Global Investors and China Merchants Fund Management, provides targeted exposure to this market. It is also the first CSI Dividend Index ETF listed outside Mainland China.

Source: Lion Global Investors, 28 Feb 2025

Here’s what sets this ETF apart:

1. Focused

The ETF tracks the CSI Dividend Index, which consists of 100 Shanghai-listed or Shenzhen-listed A shares with high cash dividend yields, stable dividends and a certain scale and liquidity. One key criterion involves continuous cash dividend payout for at least 3 years. The index sets a 10% securities weightage cap and for smaller-cap stocks below RMB 10 billion market value, a 0.5% weightage cap is applied. The index is rebalanced annually in December and accommodates for ongoing adjustments for ad-hoc events like spinoffs.

Source: Lion Global Investors, 28 Feb 2025

As of 28 February 2025, the CSI Dividend Index has a dividend yield of 6.2%. This is higher than the Straits Times Index (STI) at 4.7%, CSI 300 Index at 3.0% and the S&P 500 Index at 1.2%.

Source: Bloomberg, China Securities Index as of 28 February 2025

Source: Bloomberg, China Securities Index as of 28 February 2025

While waiting for potential price appreciation, dividends allow investors to lock in capital gains and enjoy a passive income.

1. Consistent and Steady Income (CSI).

Many China equities ETFs are heavily weighted toward volatile stocks, making them less ideal for investors seeking INCome. The Lion-China Merchants CSI Dividend Index ETF offers targeted exposure financially sound companies with sustainable dividends.

• Consistent: The index focuses on companies with a proven track record of consistent dividend payments at least in the past 3 years.

• Steady: Companies are selected based on their robust financial health. These companies typically have strong cash flows and high free cash flow to dividend coverage ratios.

• Income: This ETF helps investors access a diversified portfolio of dividend-paying stocks, generating a passive income stream.

Source: Lion Global Investors, 28 Feb 2025

1. Diversified

As of 31 January 2025, this index is diversified across numerous mature dividend-paying sectors. Finance is the largest sector, making up 24% of the portfolio, with Energy and Industrials rounding out the top three sectors. The index is well-diversified across 10 sectors.

Here is a table showing the index’ top 10 constituents. Among them, one key constituent is Cosco Shipping Holdings which is one of the world’s largest dry bulk carriers. Founded in 1997, HLA is a leading menswear brand in China. In the past 3 years, COSCO consistently maintained a dividend payout ratio of 30% to 50%. Through this ETF, investors can gain exposure to all these constituents.

Source: China Securities Index as of 28 February 2025.

Securities referenced are not intended as recommendations to buy or sell.

For More Information

TigerLive

We were delighted to have Mr. Ong Xun Xiang, Head of ETFs at Lion Global Investors, share insights on the new ETF launch on Tiger Live. Catch the replay here!

Product Highlights Sheet and Prospectus: https://eservices.mas.gov.sg/opera/Public/CIS/ViewProsDetail.aspx?prosID=35e173e624824ceb8adaefe4f6cfa060

*Terms & Conditions:

1. The Campaign period is from 10 March 2025, Monday from 9am to 21 March 2025, Friday at 5pm. To qualify, you need to subscribe to the ETF during the campaign period and there is a minimum one month holding period after the listing date (March 28, 2025).

2. You will receive S$12 for every S$5,000 you subscribe to the Lion-China Merchants CSI Dividend Index ETF, up to a maximum of S$600.

3. The rewards will be credited to your account within 7 business days after the 1 month holding period from listing date (Listing date: 28 March 2025).

Other notes

• The Cash Coupon reward is limited to the first S$2.5 million in total subscriptions received by TBSG or the first 500 customers, whichever comes first.

• This promotion reward does not conflict with other Tiger Brokers campaign rewards in the same period.

• For further inquiries, please call our customer service hotline (65) 63312277 or consult our online customer service via https://www.itiger.com/sg

• Tiger Brokers reserves the right, at its sole discretion, to determine the eligibility of participants for the Campaign or receipt of rewards. The decisions of Tiger Brokers on all Campaign-related matters are final and binding on participants. Tiger Brokers is under no obligation to disclose any Campaign-related matters or results to the participants.

Disclaimer - $600 Cash Coupon promotion

• Tiger Brokers reserves the right, at its sole discretion, to determine the eligibility of participants for the Campaign / Promotion or receipt of rewards. The decisions of Tiger Brokers on all Campaign / Promotion-related matters are final and binding on participants. Tiger Brokers is under no obligation to disclose any Campaign / Promotion-related matters or results to the participants.

• Tiger Brokers is not responsible for any injury, loss, damage, or expense incurred by any participant or any other person in connection with the Campaign / Promotion. This includes, but is not limited to, losses (including lost opportunities) resulting from late or non-notification, computation errors, technical issues, hardware or software malfunctions, incorrect transactions, lost or unavailable network connections, or misdirected notices.

• By participating in this Campaign/Promotion, participants agree to release and hold Tiger Brokers harmless from any liability for any injuries, losses, or damages of any kind to any person or property arising from:

  the awarding, acceptance, receipt, possession, use, or misuse of any rewards or parts thereof awarded pursuant to the Campaign; and

  participation in the Campaign or promotion-related activities.

• Tiger Brokers may, at any time and without prior notice, amend, modify, delete, or add to these Terms and Conditions, suspend or terminate the Campaign / Promotion, substitute the rewards, or alter the Campaign / Promotion's conduct without any liability to any person.

• In case of any inconsistency between these Terms and Conditions and any marketing or promotional materials related to the Campaign / Promotion, these Terms and Conditions shall prevail.

• These Terms and Conditions should be read alongside the Tiger Brokers Customer Agreement, which applies to all participants.

• These Terms and Conditions are governed by and construed in accordance with Singapore law, and the Singapore courts have exclusive jurisdiction.

• Any person who is not a party to any agreement governed by these terms and conditions shall have no right under the Contracts (Rights of Third Parties) Act 2001 to enforce any of these terms and conditions.

• The information provided herein is for reference only and does not constitute, and should not be considered as) an offer, recommendation, or solicitation to purchase or sell any financial products or services; or

  b) a proposal to make any financial decisions; or

  c) any investment advice.

• Investing in financial products always involves inherent risks of loss. Tiger Brokers accepts no liability for any losses related to investors' investment activities. Past performance does not guarantee future results.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Disclaimer – Lion-China Merchants CSI Dividend Index ETF

This advertisement or publication has not been reviewed by the Monetary Authority of Singapore. It is for information only, and is not a recommendation, offer or solicitation for the purchase or sale of any capital markets products or investments and does not have regard to your specific investment objectives, financial situation, tax position or needs. You should read the prospectus and Product Highlights Sheet of the Lion-China Merchants CSI Dividend Index ETF (“ETF”), which is available and may be obtained from Lion Global Investors Limited (“LGI”) or any of the its distributors and appointed Participating Dealers (“PDs”), for further details including the risk factors and consider if the ETF is suitable for you and seek such advice from a financial adviser if necessary, before deciding whether to purchase units in the ETF.

Investments in the ETF are not obligations of, deposits in, guaranteed or insured by LGI or any of its affiliates and are subject to investment risks including the possible loss of the principal amount invested. The performance of the ETF is not guaranteed and, the value of its units and the income accruing to the units, if any, may rise or fall. Past performance, payout yields and payments, as well as, any prediction, projection, or forecast are not necessarily indicative of the future or likely performance, payout yields and payments of the ETF. Any extraordinary performance may be due to exceptional circumstances which may not be sustainable. Dividend distributions, which may be either out of income and/or capital, are not guaranteed and subject to LGI’s discretion. Any such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value of the ETF. Any references to specific securities are for illustration purposes and are not to be considered as recommendations to buy or sell the securities. It should not be assumed that investment in such specific securities will be profitable. There can be no assurance that any of the allocations or holdings presented will remain in the ETF at the time this information is presented. Any information (which includes opinions, estimates, graphs, charts, formulae or devices) is subject to change or correction at any time without notice and is not to be relied on as advice. You are advised to conduct your own independent assessment and investigation of the relevance, accuracy, adequacy and reliability of any information or contained herein and seek professional advice on them. No warranty is given and no liability is accepted for any loss arising directly or indirectly as a result of you acting on such information. The ETF may, where permitted by the prospectus, invest in financial derivative instruments for hedging purposes or for efficient portfolio management. LGI, its related companies, their directors and/or employees may hold units of the ETF and be engaged in purchasing or selling units of the ETF for themselves or their clients.

The units of the ETF are listed and traded on the Singapore Exchange Securities Trading Limited (“SGX-ST”), and may be traded at prices different from its net asset value, suspended from trading, or delisted. Such listing does not guarantee a liquid market for the units. You cannot purchase or redeem units in the ETF directly with the manager of the ETF, but you may, subject to specific conditions, do so on the SGX-ST or through the PDs.

© Lion Global Investors Limited (UEN/ Registration No. 198601745D). All rights reserved. LGI is a Singapore incorporated company and is not related to any corporation or trading entity that is domiciled in Europe or the United States (other than entities owned by its holding companies).

Disclaimer – China Securities Index Co., Ltd.

All rights in the CSI Dividend Index (“Index”) vest in China Securities Index Co., Ltd. (“CSI”). CSI does not make any warranties, express or implied, regarding the accuracy or completeness of any data related to the Index. CSI is not liable to any person for any error of the Index (whether due to negligence or otherwise), nor shall it be under any obligation to advise any person of any error therein. The Fund based on the Index is in no way sponsored, endorsed, sold or promoted by CSI and CSI shall not have any liability with respect thereto.

Disclaimer – China Merchants Fund Management Company Limited

The references to the company name and logo of China Merchants Fund Management Company Limited in this material do not constitute a guarantee by China Merchants Fund Management Company Limited of the authenticity, accuracy and completeness of the relevant content, nor do they constitute a judgment or guarantee by China Merchants Fund Management Company Limited of the investment value and performance of the Lion-China Merchants CSI Dividend Index ETF. China Merchants Fund Management Company Limited assumes no liability for this material or the investors’ investment in the Lion-China Merchants CSI Dividend Index ETF.

Past performances of China Merchants CSI Dividend ETF and CSI Dividend Index neither are indicative of their future performances, nor constitute a guarantee of investment returns or any investment advice. Investing in funds involves risks, and caution is advised.

Disclaimer - Tiger Brokers (Singapore) Pte Ltd

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purposes only, which does not consider your own investment objectives, financial situations or needs. Tiger Brokers assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing. This advertisement has not been reviewed by the Monetary Authority of Singapore.