Alternative Investments/ESG: A Shariah Compliant ETF Tracking China ‘A’ Shares Debuts In Malaysia

It’s the world’s first Islamic ETF investing in China A-shares.

Value Partners Group Ltd listed today the VP-DJ Shariah China A-Shares 100 ETF, the world’s first Shariah-compliant A-share exchange traded fund (ETF), on Bursa Malaysia. The ETF provides investors exposure to Shariah-compliant stocks within the China A-Shares equity universe. (The Star)

The ETF tracks the performance of the Dow Jones Islamic Market China A-Shares 100 Index.

Shariah China A-Shares ETF

Launched by Value Partners on July 12, the fund is managed by Value Partners Asset Management Malaysia Sdn Bhd, a wholly-owned subsidiary.

“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,” said Value Partners co-founder, co-chairman and co chief investment officer Datuk Seri Cheah Cheng Hye. “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.”

“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,” said Bursa Malaysia Bhd chief executive officer Datuk Muhamad Umar Swift.

Wahed Technologies

The Shariah China A-Shares ETF

will also feature on digital Islamic robo-advisor Wahed Technologies Sdn Bhd’s platform, following strengthening demand for shariah mutual funds in Southeast Asia.

“The launch of the China A-Shares ETF presents a unique opportunity for Malaysian investors to participate in the growth of the second-largest economy in the world, while adhering to the Shariah,” said Syakir Hashim, CEO and Country Head of Wahed Invest Malaysia.

Virtual launch

The Shariah China A-Shares ETF launched virtually today (July 28, 2021) on the Bursa Malaysia.

Chairman of Bursa Malaysia, delivered the keynote address at the virtual listing ceremony said, “The COVID-19 pandemic has seen an increasing number of investors taking a strategic approach towards sustainable investing. This has given Shariah-compliant products much potential given the similarities in ethical consideration and social responsibility. Supported by a well-developed Islamic finance framework and robust Islamic capital market, the listing of this Shariah ETF is therefore well placed to meet this growing demand.”

Related Story:   Wealthsimple Launches An ETF For Shariah-Compliant Stocks

Image: Interior Prayer room NiuJie Muslim Mosque China (Credit Flickr)                                               

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Artificial Intelligence: AI To Help Survey For Endangered Bats Under Bridges
September 22, 2021     Artificial Intelligence, News

Hundreds of thousands of bats from about 40 species routinely nest under US bridges, and many of them are endangered or threatened. Transportation departments must mandatorily check for them before…
Artificial Intelligence: AI Cameras In Amazon Delivery Vehicles Unfairly Penalize Drivers
September 21, 2021     Artificial Intelligence, News

Amazon (NASDAQ: AMZN) installed AI-powered cameras in its delivery fleet in February as an investment in safety technology across its operations. The company said at the time the system would…
FinTech: Assets, A New Product From Wise, Lets You Spend From Your Stocks Portfolio
September 21, 2021     FinTech, News

Wise (LON: WISE), the UK payments fintech previously known as TransferWise, has taken its first steps into investing solutions. Its Assets product allows users to invest in stocks but also…
Alternative Investments/ESG: ETFMG Launches Maritime Decarbonization ETF

ETF Managers Group, which created the highly successful Breakwave Dry Bulk Shipping ETF (NYSE: BDRY), has launched a sister ETF – the ETFMG Breakwave Sea Decarbonization Tech ETF (BSEA). The…