China's top stocks are back in focus. Here's how to invest.

Disclosure: This post is sponsored by UOB Asset Management. All views and opinions expressed in this post are from Beansprout. This advertisement has not been reviewed by the Monetary Authority of Singapore. This does not constitute as financial advice and you should seek advice from a financial adviser, or consider whether the portfolio is suitable for you.

What happened?

Chinese equities have been making headlines in the past few months.

The 1-year return on FTSE China A50 Index as of 26 March 2025 was 11.4% compared to the S&P 500, which was 9.77%.

Recent advancements in AI, led by DeepSeek, and green shoots in high-growth industries such as in EV cars, with BYD overtaking Tesla in sales in 2024, are helping refocus investor attention on China.

At the same time, the Chinese government has made its economic stance clear: consumption is back on the priority list, fiscal support is ramping up through an expanded budget deficit, and innovation is being championed as a driver of future growth.

As someone keen to diversify into China, I’ve been following these developments closely in case I want more exposure to China’s onshore markets. 

What’s driving the renewed interest in Chinese stocks?

At the macro level, China’s 2025 GDP growth target remains steady at 5%, signalling the government’s commitment to economic stability. 

To support this, the government has pledged increased investments in AI, green energy, and innovations in healthcare, alongside a substantial RMB 10 trillion (US$1.4 trillion) support package for local governments over the next five years (Reuters, 11 November 2024).

In addition, a 30-point action plan has been introduced to revive consumption, while the inflation target has been lowered to 2%—the lowest in two decades (Bloomberg, 4 March 2025). 

Together, these measures reflect a policy environment that is increasingly supportive of consumer spending, business activity, and investor sentiment.

On the company level, several Chinese firms have reported stronger earnings and share price performance. 

Notably, BYD overtook Tesla in vehicle sales in 2024, underscoring the growing competitiveness of China’s electric vehicle sector.

All of this has made me more curious about how to tap into China’s evolving growth story without picking individual stocks. 

That’s where the UOBAM FTSE China A50 Index ETF comes in.

What is the UOBAM FTSE China A50 Index ETF?

The UOBAM FTSE China A50 Index ETF is an exchange-traded fund listed on the Singapore Exchange (SGX). 

This ETF offers access to the top 50 A-share China-based companies listed across both the Shanghai and Shenzhen stock exchanges.

China A-shares are quoted in Renminbi (RMB) and differ from B-shares, which are denominated in foreign currencies like the US dollar, and access to A-shares has historically been restricted due to government regulations. 

These restrictions make the Singapore-listed China A50 ETF an attractive, fuss-free alternative.

Previously, the ETF was known as the United SSE 50 China ETF, which only tracked stocks on the Shanghai Stock Exchange.

But effective 25 March 2025, UOB Asset Management has revamped the fund.

It now tracks the FTSE China A50 Index—a more comprehensive benchmark that captures both Shanghai and Shenzhen-listed names, including high-growth sectors and consumer-focused companies that align with China's latest economic priorities.

Key features of the UOBAM FTSE China A50 ETF

#1 – Broader and more representative exposure

The transition from the SSE 50 to the FTSE China A50 Index means this ETF now offers a broader view of China’s A-share market.

It’s no longer limited to the Shanghai Stock Exchange.

By including companies from Shenzhen, the ETF now captures leaders in innovation, particularly in sectors like green energy, EVs, and tech, which were underrepresented in the SSE 50 index. 

This shift results in a more balanced view of China’s capital markets. The FTSE China A50 Index now comprises 39 Shanghai-listed stocks and 11 Shenzhen-listed stocks (SGX, 25 March 2025).

This broader coverage is timely, as China’s economy is undergoing a tech transformation, with the government expected to continue prioritising and investing heavily in tech-driven growth.

#2 – Focus on high-growth sectors

With China’s government prioritising domestic consumption, tax reforms, and support for consumer loans, sectors like consumer staples, healthcare, green energy, and financials are expected to benefit.

As of 24 March 2025, the FTSE China A50 Index includes prominent names such as:

• Kweichow Moutai (Beverages) – 11.8% weight
• Contemporary Amperex Technology (CATL) (EV Batteries) – 6.8% weight
• China Merchants Bank (Banking) – 5.5% weight
• China Yangtze Power (Utilities) – 4.1% weight
• BYD (Automotive and Electronics) – 4.0% weight
• Ping An Insurance Group (Financial) – 3.3% weight

At the top is Kweichow Moutai (11.8% index weight), China’s most iconic baijiu brand. Its high-end Moutai liquor is a popular cultural symbol, often served at diplomatic events, business banquets, and major family celebrations. 

Then there’s BYD, one of the most talked-about Chinese companies in recent months after the company overtook Tesla in sales in 2024. 

The combination of price competitiveness, smart assisted driving features, and fast-charging battery technology has translated into a 34% year-on-year net profit growth in 2024 (BYD, 24 March 2025). 

BYD shows no signs of slowing down as it tries to capture more market share with its global expansion. Over the past 5 years, BYD has delivered a 45.1% annualised return (UOB Asset Management, Bloomberg as of 28 April 2025), making it one of the most exciting EV plays in the market today.

Meanwhile, CATL, China’s leading EV battery manufacturer, continues to lead in battery tech and has recently announced a strategic partnership with NIO, another Chinese EV company, to develop the world’s largest battery swapping network.

Ping An Insurance (3.3% weight) rounds out the list as China’s largest insurer by market cap. More than just insurance, it’s a financial giant with businesses across banking, asset management, and healthcare.

As of 31 January 2025, the A50 Index comprises 33.9% Financials, 20.5% Consumer Staples, and 14.3% Industrials. 

#3 – Accessibility and simplicity

From a retail investor’s perspective, the UOBAM FTSE China A50 ETF provides ease of access to China stocks.

The ETF trades under the tickers JK8, which is denominated in SGD and VK8, which is denominated in USD.

I can get diversified exposure to China without the hassle of stock-picking, navigating foreign brokerage platforms, or worrying about foreign currency conversions.

It’s also eligible for purchase using SRS funds.

What is the historical performance of the China A50 index?

In 2024, the FTSE China A50 Index delivered a total return of 21.8% (18.2% in USD terms).

It was also one of the top three performers among FTSE Russell’s 30 China-focused indices, with the second-lowest volatility and high defensiveness over the past three years (SGX, FTSE Russell, 24 March 2025)

When compared to the FTSE China A All Cap Index, the China A50 Index outperformed during rallies and had lower drawdowns during market corrections over a three-year period. 

How can I access the UOBAM FTSE China A50 Index ETF?

Investors can buy the UOBAM FTSE China A50 Index ETF through their usual brokerage accounts on SGX.

It’s available in both SGD (JK8) and USD (VK8) counters. It’s also eligible under the Supplementary Retirement Scheme (SRS). 

What is the management fee of the ETF?

The management fee of the UOBAM FTSE China A50 ETF is 0.45% per annum as of 26 March 2025 .

What are the risks and considerations of investing in the UOBAM FTSE China A50 Index ETF?

#1 – Policy risk

The announced Chinese stimulus plans and policies to support the economy have led to renewed optimism about the stock market. 

But it’s important to keep in mind that the follow-through on these policies and the impact on the economy may vary depending on how effectively and quickly they are implemented. 

#2 – Currency risk

The underlying assets in the UOBAM FTSE China A50 Index ETF are denominated in Renminbi (RMB). 

While trading the ETF in SGD or USD on the SGX eliminates currency conversion fees, fluctuations in exchange rates between RMB and your local currency can still impact returns.

For example, if the value of the A-share holdings increases, a weakening of the RMB against the SGD or USD could dampen your overall gains. 

Like any overseas investments, you’ll have foreign currency exposure that you should be mindful of.

Please refer to the Prospectus for more information on such risks as well as other risks that might be associated with an investment into units of the Fund.

What would Beansprout do?

The UOBAM FTSE China A50 Index ETF has caught my attention as someone who’s actively building a long-term portfolio with a tilt towards Asia. 

It gives me convenient, diversified, and relatively low-cost access to some of China’s most influential companies—all from my existing brokerage platform in Singapore.

With the recent index revamp, the ETF is now more representative of China’s growth ambitions and strategic sectors.

In the meantime, I’ll continue to monitor macroeconomic signals and policy shifts. 

If you’re looking to get exposure to China’s next growth story without the complexity of picking individual stocks or opening foreign trading accounts, find out more about the UOBAM FTSE China A50 Index ETF here. 

Important Information 

This document is for general information only. It does not constitute an offer or solicitation to deal in units (“Units”) in the UOBAM FTSE China A50 Index ETF (“Fund”) or investment advice or recommendation and was prepared without regard to the specific objectives, financial situation or needs of any particular person who may receive it.

The information contained in this document, including any data, projections and underlying assumptions, are based upon certain assumptions, management forecasts and analysis of information available and reflects prevailing conditions and UOB Asset Management Ltd’s (“UOBAM”) views as of the date of the document, all of which are subject to change at any time without notice. In preparing this document, UOBAM has relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by UOBAM. While the information provided herein is believed to be reliable, UOBAM makes no representation or warranty whether express or implied, and accepts no responsibility or liability for its completeness or accuracy. Nothing in this document shall, under any circumstances constitute a continuing representation or give rise to any implication that there has not been or there will not be any change affecting the Fund. No representation or promise as to the performance of the Fund or the return on your investment is made. Past performance of the Fund or UOBAM and any past performance or prediction, projection or forecast of the economic trends or securities market are not necessarily indicative of the future or likely performance of the Fund or UOBAM. The value of Units and the income from them, if any, may fall as well as rise, and is likely to have high volatility due to the investment policies and/or portfolio management techniques employed by the Fund. Investments in Units involve risks, including the possible loss of the principal amount invested, and are not obligations of, deposits in, or guaranteed or insured by United Overseas Bank Limited (“UOB”), UOBAM, or any of their subsidiary, associate or affiliate (“UOB Group”) or distributors of the Fund. The Fund may use or invest in financial derivative instruments and you should be aware of the risks associated with investments in financial derivative instruments which are described in the Fund's prospectus. The UOB Group may have interests in the Units and may also perform or seek to perform brokering and other investment or securities-related services for the Fund.

Investors should note that the Fund is not like a conventional unit trust in that an investor cannot redeem his Units directly with UOBAM and can only do so through the participating dealers if his redemption amount satisfies a prescribed minimum that will be comparatively larger than that required for redemptions of units in a conventional unit trust. An investor may therefore only be able to realise the value of his Units by selling the Units on the Singapore Exchange Limited (“SGX”). Investors should also note that any listing and quotation of Units on the SGX does not guarantee a liquid market for the Units.

An investment in unit trusts is subject to investment risks and foreign exchange risks, including the possible loss of all or part of the principal amount invested. Investors should read the Fund's prospectus and product highlights sheet, which are available and may be obtained from UOBAM or any of its appointed agents or distributors, before deciding whether to subscribe for or purchase any Units. You are responsible for your own investment decisions. You may wish to seek advice from a financial adviser before making a commitment to invest in any Units, and in the event that you choose not to do so, you should consider carefully whether the Fund is suitable for you.

The UOBAM FTSE China A50 Index ETF has been developed solely by UOBAM. The UOBAM FTSE China A50 Index ETF is not in any way connected to or sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). FTSE Russell is a trading name of certain of the LSE Group companies. All rights in the FTSE China A50 Index vest in the relevant LSE Group company which owns the FTSE China A50 Index. “FTSE®” is a trademark of the relevant LSE Group company and is used by any other LSE Group company under license. The FTSE China A50 Index is calculated by or on behalf of FTSE International Limited or its affiliate, agent or partner. The LSE Group does not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the FTSE China A50 Index or (b) investment in or operation of the UOBAM FTSE China A50 Index ETF. The LSE Group makes no claim, prediction, warranty, or representation either as to the results to be obtained from the UOBAM FTSE China A50 Index ETF or the suitability of the FTSE China A50 Index for the purpose to which it is being put by UOBAM.

This advertisement has not been reviewed by the Monetary Authority of Singapore.