South Korean asset management company Mirae Asset Global Investments said Friday that two new exchange traded funds focused on semiconductors, robots and artificial intelligence businesses in China have been listed on the Hong Kong Exchange and Clearing, the sole securities and derivatives exchange in Hong Kong.
The Chinese chip sector has been fast growing in recent years in tandem with the growth of IT and internet platform businesses in the local market. Many Chinese companies, especially those that produce light emitting diodes, solar wafers, liquid crystal displays and chipsets, are considered to have competitive edge in the global market, the Seoul-based investment firm explained, citing a report from its Hong Kong office.
The Global X China Semiconductor ETF invests in chip businesses, and is based on the FactSet China Semiconductor Index, which has recorded 111.7 percent in profit margin over a year by the end of July.
The Global X China Robot & AI ETF, on the other hand, invests in stocks linked to the robotic and AI technologies and is based on the FactSet China Robotics & Artificial Intelligence Index.
China is one of the largest players in the global robot industry as it accounts for 37 percent of the global market share. The Chinese government has been pushing to grow high-end chip manufacturing business while nurturing emerging self-driving companies.
The two funds invest in up to 25 stocks, respectively, with the investment limit for each stock set at 7 percent.
“With the newly listed ETFs, traders can easily invest in Chinese companies for chips, robots and AI, which are expected to achieve exponential growth in the following years,” said Lee Jeong-ho, chief of Mirae Asset’s Hong Kong branch.
The Korean firm runs some 370 ETFs, worth 47 trillion won ($39.6 billion), in eight nations, including the United States, Canada, and Australia. Those funds listed in Hong Kong reached 1 trillion won in net asset value.
By Kim Young-won (email@example.com