UOBAM Ping An ChiNext ETF Annual Report Analysis (FY Ended 30 June 2025)
The UOBAM Ping An ChiNext ETF, a sub-fund of United ETF Series 1, provides Singapore investors exposure to China’s ChiNext Index, focusing on high-growth, innovation-driven sectors. This annual report covers the financial year ending 30 June 2025 and sheds light on the ETF’s performance, portfolio composition, and outlook amid evolving market dynamics in China.
Key Financial Metrics
| Metric |
FY 2025 |
FY 2024 |
YoY Change |
| Net Asset Value (NAV) |
S\$2,198,118 |
S\$1,701,952 |
+29.2% |
| Total Return |
S\$232,844 |
(S\$2,643,345) |
Positive turnaround |
| NAV per Unit |
S\$0.7240 |
S\$0.6109 |
+18.5% |
| Subscriptions |
S\$609,360 |
S\$142,540 |
+327.9% |
| Redemptions |
S\$346,038 |
S\$7,958,300 |
-95.7% |
| Management Fee |
S\$11,549 |
S\$42,144 |
-72.6% |
| Total Operating Expenses |
S\$60,710 |
S\$138,872 |
-56.3% |
| Expense Ratio |
2.88% |
1.94% |
+0.94ppt |
| Portfolio Turnover Ratio |
17.97% |
2.21% |
+15.76ppt |
Performance Overview
The ETF’s NAV increased by 29.2% year-over-year, and NAV per unit rose 18.5%. After a negative return in FY 2024, the fund posted a positive total return of S\$232,844 in FY 2025, reflecting a strong recovery. The fund’s investment return for the year was 16.51%, although this lagged the ChiNext Index’s 23.59% gain, mainly due to fund expenses and tracking error.
Subscriptions surged over 300%, while redemptions plunged, indicating renewed investor confidence and stability in fund flows. Operating expenses and management fees both fell significantly, supporting improved net returns.
Historical Performance Trends
Since its inception in November 2022, the ETF has closely tracked the ChiNext Index, with minor deviations attributed to fees and deployment timing. The fund’s return since inception is -9.54%, underperforming the benchmark (-5.85%), but recent trends show a marked recovery from the prior year’s deep deficit.
Portfolio Composition and Top Holdings
The ETF invests solely in the Ping An ChiNext ETF, which in turn tracks the ChiNext Index. As of 30 June 2025, the largest holdings in the underlying Ping An ChiNext ETF were:
- Contemporary Amperex Technology Co Ltd (18.77%)
- East Money Information Co Ltd (8.38%)
- Shenzhen Inovance Technology Co Ltd (3.71%)
- Zhongji Innolight Co Ltd (3.65%)
- Shenzhen Mindray Bio-Medical Electronics Co Ltd (3.59%)
- Eoptolink Technology Inc Ltd (3.23%)
- Sungrow Power Supply Co Ltd (2.87%)
- Wens Foodstuffs Group Co Ltd (2.63%)
- Victory Giant Technology Huizhou Co Ltd (2.38%)
- Eve Energy Co Ltd (1.67%)
Sector composition shifted during the year, with notable index rebalancing. In June and December 2024, several technology, communication, and consumer stocks were added, while healthcare and industrial names were removed.
Macroeconomic and Market Review
China’s equity markets showed resilience and adaptability in 2025, supported by regulatory interventions, monetary easing, and strong macroeconomic indicators. Authorities implemented targeted stimulus, including interest rate reductions, liquidity injections, and the establishment of a RMB 500 billion market stabilization fund. Sector rotation was frequent, with technology and AI initially favored before defensive repositioning amid tariff uncertainty, then a rebound as valuations normalized.
Geopolitical tensions (US-China, Middle East) and policy developments continued to influence risk appetite, but the A-share market demonstrated increasing resilience to external shocks. The fund manager expects China’s strategic focus on innovation, AI, and advanced manufacturing to drive long-term growth.
Related-Party Transactions and Unusual Fund Flows
The fund had transactions with related parties (UOB Asset Management Ltd and State Street Bank and Trust Company), involving management, trustee, registrar, and custody fees. The manager also reimbursed some expenses, which helped lower the fund’s cost base.
Risk Management
The fund’s assets are held almost entirely in Chinese equities via the underlying Ping An ChiNext ETF, with minor exposure to cash and margin accounts. Credit and liquidity risks are mitigated by reputable custodians and daily redemption features. The fund’s expense ratio rose, but overall operating costs fell, supporting improved performance.
Outlook and Strategy
The manager remains optimistic about China’s A-share market, citing strong fundamentals, attractive valuations, and supportive policy measures. Risks include potential escalation of geopolitical tensions, less impactful stimulus, and slower-than-expected recovery in China’s property sector and macro conditions.
Chairman’s Statement
No explicit Chairman’s statement was included in the report. The manager’s statement and the trustee’s report both confirm adherence to the fund’s investment mandate and regulatory compliance. The tone is positive, highlighting improved performance and confidence in the fund’s strategy going forward.
Conclusion & Investment Recommendations
Overall Assessment: The UOBAM Ping An ChiNext ETF rebounded strongly in FY 2025, with positive returns, higher NAV, and lower costs. The macroeconomic environment in China remains supportive, and fund flows indicate renewed investor confidence. However, the fund continues to lag the benchmark, and key risks remain from geopolitics and economic recovery pace.
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If You Currently Hold This Stock: The fund has demonstrated a strong turnaround and favorable outlook. Investors may consider holding their position, especially if seeking exposure to China’s innovation sectors. Monitor macro risks and expense ratio trends.
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If You Do Not Hold This Stock: The ETF offers diversified exposure to China’s high-growth sectors and has shown resilience. New investors may consider a gradual entry, mindful of ongoing risks and the fund’s tracking error. Due diligence on China’s macro trends is advised.
Disclaimer: This analysis is based strictly on data and commentary from the official annual report. It does not constitute investment advice. Investors should consider their own risk tolerance and consult a qualified adviser before making any investment decisions.
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