• In recent weeks the Lion-OCBC Securities Hang Seng TECH ETF (“HS TECH ETF”) has ranked as the second most traded ETF listed on SGX, averaging daily trading ranges of 200 bps. The ETF has also been recipient to S$208 million in inflow, since debuting in December 2020.  
   
• The five biggest stocks of the FTSE ST China Index, YZJ Shipbldg, Wilmar Intl, HPH Trust USD, CapLand China Trust and Nanofilm, have also averaged daily trading ranges of 223 bps, ranging from 160 bps for CapLand China Trust to 335 bps for HPH Trust USD.
   
• Nanofilm has averaged 14.3 tick trading ranges over the past month, equivalent to 14.3 cents as stock is trading above S$1.00. Since listing on 30 October, the stock has rallied from an issue price of S$2.59 to an all-time high of S$6.49 formed on 21 July.

Over the past one month has seen the Lion-OCBC Securities Hang Seng TECH ETF (“HS TECH ETF”) average 1.5x trading ranges of the Hang Seng Index, with the HS TECH ETF averaging daily amplitudes of 200 basis points (“bps”). This means on average, HS TECH ETF units valued at S$10,000 have on average been swinging by S$200 between the daily high and low. The HS TECH ETF also saw an average of 26 ticks between the daily high and low during the past month. Amplitude represents the difference between daily high and daily low price divided by the volume weighted average price of the stock, and used to gauge the tradability of a stock, with the higher amplitude reflecting greater potential for risk to return for active and intra-day traders. The amplitude of the HS Tech Index was double the average amplitude of both the four remaining ETFs that ranked as the five most traded ETFs over the month, in addition to the three other China-focused ETFs listed on SGX. 

While the HS Tech ETF generated a 9.2% price decline in SGD terms from the end of 2020 through to 19 July, the ETF has also been recipient to S$208 million in inflow since debuting in December 2020 through to 19 July, with inflows recorded for every month through to the end of June. For the month of July through to 19 July, the HS Tech ETF was recipient to S$33 million in inflows.

The HS TECH ETF, with heavyweight stocks such as Tencent Holdings, Alibaba Group Holding, Meituan, JD.com Inc and Xiaomi Corp provides investors with a new China-focused market distinct from the existing China-focused stocks that comprise the FTSE ST China Index. Both the HS TECH Index and FTSE ST China Index maintain a less than 0.4 simple correlation over the past 5 years. Moreover with the recent propensity for swings in the Technology Sector, the price-ratio spread of the HS TECH Index to the FTSE ST China Index has moved from one standard deviation below the 3-month mean on 11 May, to two standard deviations above the 3 month mean on 29 June, before moving back to one standard deviation below the 3 month mean on 6 July.

The five largest stocks of the FTSE ST China Index by market value, Yangzijiang Shipbuilding, Wilmar International, Hutchison Port Holdings Trust USD, CapitaLand China Trust and Nanofilm Technologies International, have also averaged daily trading ranges that have paralleled the HS TECH ETF over the past month. The five stocks have averaged daily trading ranges of 223 bps over the period, ranging from 160 bps for CapitaLand China Trust to 335 bps for Hutchison Port Holdings Trust USD. The FTSE ST China Index tracks the constituents of the FTSE ST All-Share Index, which have a majority of their sales from, or operating assets located in China.

The tradability metrics of the five most traded ETFs and the five largest stocks of the FTSE ST China Index by market value are tabled below.

 Source: SGX, Refinitiv, Bloomberg (Data as of 19 July 2021)
 

 Source: SGX, Refinitiv, Bloomberg (Data as of 19 July 2021)


As detailed in the table above, the past months has seen Nanofilm Technologies International has averaged 14.3 tick trading ranges, equivalent to 14.3 cents as stock is trading above S$1.00. Since listing on 30 October, the stock has rallied from an issue price of S$2.59 to an all-time high of S$6.49 formed on 21 July. For its FY20 (ended 31 Dec), Nanofilm Technologies International reported 77% of its external customer revenue to China, based on Group’s entities’ place of business.