Mirae Asset Global Investments, through its ETF subsidiary Global X Hong Kong, announced on Oct. 30 that it will commence trading of the “Global X Hang Seng TECH ETF” on the Shanghai and Shenzhen stock exchanges starting Nov. 6.
The Global X Hang Seng TECH ETF is an ETF that tracks the Hang Seng Tech Index. It invests in a diversified portfolio of 30 innovative companies, which are IT and technology-based enterprises listed on the Hong Kong Stock Exchange, representing China’s new growth industries.
To register on the Chinese mainland exchanges, stringent criteria have to be met, including 6 months since the listing date, maintaining an average daily assets under management of at least 1.7 billion HKD (approximately 300 billion won) over the past 6 months, and being an ETF that invests in Hong Kong stocks. To date, only 6 Hong Kong-listed ETFs met these criteria to be traded on the Chinese mainland.
The successful penetration of Mirae Asset’s ETF into the Chinese mainland market appears to owe much to its robust global business competencies. Since its pioneering entry into Hong Kong in 2003 as the first Korean asset manager, Mirae Asset Global Investments has actively expanded its business in the global market over the past 20 years, growing as a global asset manager. As of the end of September, the net assets of ETFs managed by Mirae Asset Global Investments worldwide amounted to 133 trillion won.
Mirae Asset Global Investments anticipates that following the Global X Hang Seng TECH ETF, more of Global X’s Hong Kong-listed ETFs will venture into the Chinese ETF market. As of the end of September, the Chinese ETF market stands at an impressive size of approximately 360 trillion won, making it the second-largest in Asia after Japan.
Kim Young-hwan, the CEO of Mirae Asset Global Investments, expressed his pleasure saying, “It’s heartening to see that as a global asset manager, our continuous efforts to provide innovative investment solutions have enabled us to become the first Korean asset management company to enter the mainland Chinese ETF market.” He further added, “We will strive to expand our product lineup to offer competitive products to local investors in the global ETF market.”