Looks like Wahed Invest Malaysia will soon have access to Shariah Compliant China ETF via Value Partners. Wahed Invest announce collaboration with Value Partners, a fund management company based in Hong Kong which has offices in Malaysia.
Value Partners will be launching a Shariah Compliant China ETF in Malaysia soon. The ETF is called VP-DJ Shariah China A-Shares 100 ETF and will be listed on Bursa Malaysia. It consists of 100 of China's Shariah compliant companies. IPO price will start at RM2. A-Shares are shares that are traded in China stock exchange (either Shanghai or Shenzhen Stock Exchange) as compared to H-Shares which are traded on Hong Kong stock exchange.
The founder of Value Partners was actually founded by a Malaysian based in Hong Kong Dato Seri Cheah Cheng Hye, he is the current chairman and co-chief investment officer in Value Partners.
Wahed Invest is a robo advisor that differentiates itself by having Shariah compliant portfolios. At the moment Wahed Invest Malaysia only has exposure to US markets, Gold markets, Malaysia Sukuk and Malaysia Equities. With this collaboration, Wahed Invest is able to launch new portfolio that has exposure to China A-Shares.
The difference between buying via Wahed Invest and directly via Bursa Malaysia on the VP-DJ Shariah China A-Shares 100 ETF is that Wahed Invest can start with a minimum of RM100 and recurring RM100 investments to have exposure to the ETF. If an investor buys directly from Bursa Malaysia, the investor needs to buy at least 100/1000 units.
China economy is expected to rebound from Covid19 pandemic, PMI (purchasing manager index), house sales are at the rise and therefore a lot of fund houses promoting China funds. Furthermore, chinese internet giants like Alibaba Tencent are trading with lower valuations than Netflix and Amazon.
However,there's currently some regulatory issues in China as tech companies (Alibaba, Didi) are facing in China causing stocks to be at lower side for now.
Update 20210830
Wahed Invest robo advisor now has investments in VP-DJ Shariah China A Shares 100ETF already. Investors still can't select full China A shares portfolio but the traditional portfolios have some portion of investments invested in this ETF.
📍Links
https://www.valuepartners-group.com/en/products-services/malaysia-corporate-information/
https://www.thestar.com.my/business/business-news/2021/07/13/value-partners-launches-etf
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