PETALING JAYA: Value Partners Group Ltd’s first Shariah China A-Share ETF – the VP-DJ Shariah China A-Shares 100 ETF – made its debut on the Main Market of Bursa Malaysia Securities today, opening at RM2.62 for a premium of 62 sen or 31% over its offer price of RM2.
However, it fell back and closed at RM2.02, representing a 2 sen or 1% premium, with a total of 220,500 shares changing hands.
Value Partners co-founder, co-chairman and co-chief investment officer Datuk Seri Cheah Cheng Hye (pix) said the ETF is the world’s first exchange-traded fund that adopts a syariah-compliant feature specialising in investing in securities on the Chinese mainland.
“Value Partners has been investing in China for the last 28 years, and we are well-known for our strong investment results over the long term. We hope Kuala Lumpur will become a global center for syariah-compliant products to invest in Chinese securities,” he said during a virtual listing ceremony today.
One of the main concerns of investors is the regulatory crackdown on the capital market by the Chinese government. On this note, Value Partners Malaysia fund manager Kamal Mustadza said most of the targeted companies by the crackdown were those in the offshore market that had been operating in an environment lacked of regulation.
On receptivity by both institutional and individual investors, Value Partners Malaysia managing director Durraini Baharuddin said clients’ receptivity has been positive as the company had many webinars since the launching of the fund on July 12.
Asked if the listing came at a favourable time as the local economy and the speed of China recovery is slower than expected, Durraini said Bursa remains a vibrant exchange for sources of return via stocks and listed instrument and a very important place for investors to participate in the capital market.
She added that unit trust fund and ETF would co-exist harmoniously for many years to come as the older generations of investors are more comfortable with the agency structure and the young investors who need things done at their fingertips with transperancy and fast execution.
Meanwhile, Bursa Malaysia chairman Tan Sri Abdul Wahid Omar said in his keynote address at the listing ceremony that the Covid-19 pandemic has seen an increasing number of investors taking a strategic approach towards sustainable investing.
VP-DJ Shariah China A-Shares 100 ETF was launched on July 12, and is managed by Value Partners Asset Management Malaysia Sdn Bhd, a wholly owned subsidiary of Value Partners Group Limited.
VP-DJ Shariah China A-Shares 100 ETF is structured to comply with syariah principles to enable participation from all walks of investors. There are currently only five syariah-compliant ETFs listed on Bursa, and this ETF will be the sixth, providing syariah and non-syariah investors further options for diversification. Due to its large population size and independent economy, market correlation between China A-Shares and other equity markets remain low, making this China A-Shares ETF an important portfolio diversification tool for investors.