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[Global Finance Awards] Mirae Asset ETF taps into Chinese market

Asset Manager of the Year / Mirae Asset Global Investments

Nov. 30, 2023 - 11:30 By Mun So-jeong
A Hong Kong tram wrapped with Mirae Asset's Global X advertisement (Mirae Asset Global Investments)

Mirae Asset Global Investments has tapped into mainland China’s exchange-traded fund market, becoming the first Korean asset manager to do so.

The Global X Hang Seng Tech ETF is the first eligible ETF under Mirae Asset to participate in the Hong Kong-China ETF Connect.

The Global X Hang Seng Tech ETF is operated by the asset manager’s ETF arm Global X based in Hong Kong. Tracking the Hang Seng Tech index, the investments are concentrated in the 30 largest companies that are active in the technology sector with high growth potential, the firm said.

The fund is now set up for trading on China’s Shanghai Stock Exchange and Shenzhen Stock Exchange from early this month. Through the ETF, local investors are able to invest in the listed companies without being limited by the government’s regulations on offshore investments.

The Hong Kong-China ETF Connect scheme was launched in 2022, allowing eligible companies listed in each market to issue ETFs that can be traded under local rules and obligations. Under rigid restrictions, only six ETFs are added on the channel, the trading avenue for ETFs listed on the Hong Kong bourse to be traded in mainland China.

With the Global X Hang Seng Tech ETF joining cross-border trading, Mirae Asset hopes to further expand its global ETF capabilities into the Chinese market, the firm said. As of end-September, China’s ETF market is worth about 360 trillion won ($277 billion), the second-largest in Asia after Japan.

“As a global asset manager that offers innovative investment solutions, we were able to become the first Korean asset manager to foray into the mainland China ETF market,” said Kim Young-hwan, head of Mirae Asset Global Investments.

“We will continue to provide more diverse investor choices with competitive global ETF products.”

Mirae Asset acquired US ETF provider Global X in 2018, extending its operations in Hong Kong, Japan, Colombia, Europe and more.