Singapore exchange operator SGX Securities debuted the listing of Lion-China Merchants CSI Dividend Index ETF, under the SSE-SGX ETF Link, a collaboration between SGX Group and Shanghai Stock Exchange ( SSE ).

The ETF, managed by Lion Global Investors ( LGI ), provides investors with access to a diversified portfolio of dividend-paying stocks, generating passive income, and is designed to mirror the performance of the China Merchants CSI Dividend Index ETF, which is listed on the SSE.

The CSI Dividend Index comprises the 100 highest-ranked stocks listed in Shanghai and Shenzhen, based on their consistent dividend payments over the past three years. The companies are selected for their strong financial health, typically having strong cash flows and high free cash flow to cover dividends.

“This latest ETF listing marks the ninth under the ETF product links between Singapore and China, underscoring the growing collaboration between the two markets,” says Ng Yao Loong, SGX Group’s head of equities.

Teo Joo Wah, LGI’s CEO, adds: “Singapore investors prefer sustainable and regular dividends, and we are thrilled to bring this flagship ETF by China Merchants Fund Management to Singapore.”