As a background, China Leaders ETF aims to replicate as closely as possible the 80 largest Stock Connect-eligible Chinese companies in the Hang Seng Stock Connect China 80 Index.
A sudden surge in volume for Lion-OCBC Securities China Leaders ETF (see chart) was probably caused by a couple of announcements made by the managers of the ETF and a Bloomberg story related to dividends and tax.
On June 24, China Leaders ETF declared a dividend of $0.0456 cents per unit, translating into a dividend yield of 3%. Last July, the ETF announced a dividend per unit of $0.468. As of May 31, the net tangible asset (NTA) per share of China Leaders ETF stood at $1.52. The dividends will be paid on July 22, with the ex-date on July 1.
