Korea Investment Management's first exchange-traded fund developed in collaboration with China Universal Asset Management's Hong Kong unit has recently been listed on the Hong Kong Stock Exchange, the asset manager announced Monday.
The CUAM Solactive China & Global Semiconductor ETF, with a net asset value of 15.85 million Hong Kong dollars ($2.06 million), was listed Friday. The fund tracks the Solactive Ace ETF Connect China & Global Semiconductor Top 30 Index, developed by German index provider Solactive.
It offers diversified exposure to major semiconductor companies worldwide, including Nvidia, TSMC, Samsung Electronics, ASML and Broadcom, as well as related technology companies in China and Hong Kong.
The fund marks the first product jointly developed by Korea Investment Management and CUAM's Hong Kong unit. The two companies began preliminary working-level discussions in April last year and signed a strategic cooperation agreement in November to expand jointly into Hong Kong's ETF market.
The two aim to secure the product's inclusion in ETF Connect, a cross-border trading scheme that provides mutual market access between mainland China and Hong Kong for eligible ETFs. The ETF was designed for potential inclusion in the scheme, subject to meeting the relevant requirements after listing.
Korea Investment Management also plans to invest about $5 million of its own capital to support the ETF's stable market debut. The two are also working to develop additional ETFs jointly.
"The ETF listing marks the first tangible outcome of the two companies' long-standing, close cooperation and an important starting point for Korea Investment Management's full-scale entry into overseas ETF markets, building on the competitiveness we have developed in Korea's domestic market," Korea Investment Management CEO Bae Jae-kyu said.
"Leveraging our expertise in global investing and ETF product development, we will continue to offer differentiated investment opportunities and gradually expand our business beyond Hong Kong into mainland China through our partnership with CUAM's Hong Kong unit."
silverstar@heraldcorp.com
