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

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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)                                               

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