ICBC CSOP FTSE
Chinese Government Bond Index ETF

Don't miss the golden investment opportunity in the
China Onshore Bond Market

Product Key Facts

USD counter ticker CYB
SGD counter ticker CYC
Index FTSE Chinese Government Bond Index
Investment strategy Representative Sampling Strategy
Listing NAV per share 10 USD
AUM* 1,546,067,544 USD
Listing date September 21, 2020
Base currency RMB
Trading currencies Primary Market Creation / Redemption – RMB, USD and SGD
Secondary Market Trading – SGD and USD
Management fee 0.25%
Yield to maturity^ 2.74%
Indicative coupon^ 3.10%
Credit quality A1/A+ by Moody’s/S&P
Distribution Semi-annual in June and December in USD
BROCHURE LEARN MORE



* Source: SGX, as of 17 August, 2021
^ Yield and indicative duration are as represented by index data. Refer to prospectus for more details for the fund key facts.









ICBC CSOP FTSE Chinese
Government Bond Index ETF
  1. The first ETF listed on SGX with direct access to China onshore bond market – too important to miss out
    • China bond market – 2nd largest bond market in the world
      The size of China bond market: over USD18 trillion, the second largest bond market in the world1.
    • Higher yield and lower correlation
      China onshore bonds tend to offer a higher yield relative to other major economies2 and have lower correlation with global bonds could potentially help improve the investment’s diversification3.

      The ICBC CSOP FTSE Chinese Government Bond Index ETF provides a new source of yield with relatively high quality (A1/A+ by Moody’s/S&P).

      Diversification benefits – low correlation of onshore China government bonds vs. other major government bond indexes globally.

      FTSE China Government Bond Index Correlation vs World Government Bond Index components4
      Mar 2009 - Jul 2021 FTSE China
      GBI USD
      FTSE US
      GBI LCL
      FTSE EMU
      GBI USD
      FTSE UK
      GBI USD
      FTSE Japan
      GBI USD
      FTSE China
      GBI USD
      1
      FTSE US
      GBI LCL
      0.06 1
      FTSE EMU
      GBI USD
      0.24 0.11 1
      FTSE UK
      GBI USD
      0.24 0.29 0.53 1
      FTSE Japan
      GBI USD
      0.16 0.52 0.27 0.27 1
      Yield
      (as of July 31, 2021)
      2.69% 0.81% -0.12% 0.67% 0.14%



      China - US 10-Year Government Bond Yield Spread (%)
      Higher than Historical Average

    • Relative stable exchange rate of RMB compared with other major currencies

      Currency Volatility5
  2. Tracking FTSE Chinese Government Bond Index to capture the investment opportunities brought by increasing fund inflows into China onshore bond market
    • Fast increasing foreign investment into China onshore bonds
      As of July 2021, foreign institutions hold more than CNY3.7 trillion (over USD580 billion) of onshore China bonds, more than 5 times of the amount held as of 2015. Even though, the foreign holding of China onshore bonds was just around 3.5%, severely underinvested by global institutions6.

      Foreign Institution Holding of Onshore China Bonds (CNY Billion)7

      With further opening up, China’s onshore bond market presents attractive opportunities to global investors.
    • Index inclusion to lead more overseas inflows into China onshore bond market
      Once all the three major global bond index providers finish inclusion of Chinese onshore bonds into their global indices, it is expected to attract over USD300 billion8 of inflows into China onshore bond market in aggregate. The upcoming FTSE WGBI’s China inclusion should in theory bring around USD140 billion9 of inflow given the index’s big client base.



  1. Source: Bloomberg, as of August 17, 2021
  2. Bloomberg, annual yield of GCNY10YR Index (2.88%) compared with USGG10YR Index (1.26%), GJGB10 Index (0.02%) and GDBR10 Index (-0.47%), as of August 17, 2021
  3. FTSE Russell, correlation matrix of FTSE China GBI USD, FTSE US GBI LCL, FTSE EMU GBI USD, FTSE UK GBI USD and FTSE Japan GBI USD, as of July 2021
  4. Source: FTSE Russell, from March 2009 to July 2021
  5. Source: Bloomberg. Based on 260-day historical volatility of GBP, JPY and EUR, as of August 17, 2021
  6. CCDC and Shanghai Clearing, as of July 2021
  7. Source: CCDC, Shanghai Clearing, as of July 2021
  8. Source: FTSE, Bloomberg, JPMorgan, UBS estimates as of 7 September 2020
  9. Estimated figure for reference only, based on China’s full weight if it were included in FTSE WGBI’s July 2021 index






FTSE Chinese Government Bond Index



Index facts10
Index Name
FTSE China Government Bond Index (CGBI)
Composition
Includes fixed-rate book-entry government bonds issued in Mainland China. Excludes zero-coupon bonds, saving bonds, bonds with maturity greater than 30 years from issuance, and bonds issued prior to January 1, 2005.
No. of Holdings
49
Market Value (CNY bn)
10,274.53
Coupon
3.10%
Yield
2.69%
Duration (years)
5.56
Credit Quality
A1/A+ by Moody’s/S&P



Index performance
History index level (in currency, unhedged)11

FTSE Chinese Government Bond Index

FTSE Chinese Government Bond Index

CNY USD EUR GBP JPY
Unhedged Unhedged Hedged Unhedged Hedged Unhedged Hedged Unhedged Hedged
YTD* 3.55 4.89 1.95 8.23 1.48 3.12 1.85 11.50 1.73
1 Year 4.10 12.53 1.31 12.22 0.48 6.23 1.07 16.81 0.87
2 Years 4.13 7.53 2.30 4.20 0.91 0.91 1.72 8.11 1.13
3 Years 4.46 6.42 3.22 5.94 1.27 4.37 2.24 5.72 1.45


*Not annualized



Holdings

Description # of Issues Par Amount* Market Value* Market Weight (%) Average Coupon (%) Average Life (Years) Yield to Maturity (%) Effective Duration
CNGBI 49 9,962.72 10,274.53 100.00 3.10 7.02 2.69 5.56
1-3 Years 17 3,367.75 3,450.18 33.58 2.89 1.86 2.36 1.79
3-5 Years 12 2,331.50 2,403.71 23.39 3.30 4.10 2.60 3.82
5-7 Years 8 1,503.02 1,557.65 15.16 3.17 5.99 2.73 5.43
7-10 Years 7 1,675.69 1,716.09 16.70 3.13 8.47 2.88 7.40
20+ Years 5 1,084.76 1,146.91 11.16 3.76 28.48 3.49 17.97

*In CNY billions



  1. Source: FTSE Russell, as of July 31, 2021.
  2. Source: FTSE Russell, as of July 31, 2021. YTD returns are not annualized.




Market Commentary
  • 2021-07-15
    CSOP - CYB_CYC - 2021 1H Review + 2H CGB Market Outlook
  • 2021-05-26
    Near Term RMB Trend
  • 2021-03-12
    CYB CYC February Performance and Commentary
  • 2021-01-11
    2020 CYC CYB Review and 2021 Outlook
  • 2020-11-10
    Quick Commentary on CGB, RMB and Market
About CSOP Asset Management Limited


CSOP Asset Management Limited (“CSOP AML”) was founded in 2008 as the first offshore asset manager set up by a regulated asset management company in China. With a dedicated focus in China investing, CSOP AML manages public and private funds, as well as providing investment advisory services to Asian and global investors. In addition, CSOP AML is best known as an ETF leader in Asia. CSOP Asset Management Pte. Ltd. (“CSOP SG”) was established as wholly-owned subsidiary of CSOP AML in 2019, with a view of having Singapore as the regional base to facilitate and offer clients in the Region with investment opportunities in China’s capital market. As of 31 July 2020, CSOP had US$ 8.2 billion in assets under management.

Source: Bloomberg, from 1 Jan, 2018 to 31 Dec, 2019

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Data Protection Officer
CSOP Asset Management Pte. Ltd.,
#18-03 Millenia Tower,
One Temasek Avenue,
Singapore 039192

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CSOP Asset Management Pte. Ltd. ("CSOP") is a regulated financial institution in Singapore by the Monetary Authority of Singapore (“MAS”). This website contains information about CSOP and the services and products offered by CSOP. The information provided on the CSOP website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country that would subject CSOP or its affiliates to any registration requirement within such jurisdiction or country. Non-Singapore investors are responsible for observing all applicable laws and regulations of their relevant jurisdictions before proceeding to access the information contained herein. By proceeding, you are representing that you have understood and accepted the restrictions set out in this section.

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