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Mirae Asset to launch more China themed ETFs

The firm now manages $880m in China-focused thematic products in Hong Kong.
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Mirae Asset Global Investments is expected to list two China thematic ETFs tomorrow on the Hong Kong bourse, according to a Hong Kong-based spokeswoman of the firm.

They are the Global X China Robotics and AI ETF and the Global X China Semiconductor ETF. Both have received regulatory approval to be launched in the SAR from the Securities and Futures Commission and the Hong Kong Exchange, their websites show.

Global X is a New York-headquartered ETF provider that Mirae Asset acquired in 2018. Following its acquisition, Mirae Asset rebranded its ETF range in Hong Kong in November last year to have the “Global X” name. Previously, they carried the “Horizons” brand, which originally came from the firm’s Canadian business.

The robotics ETF will track the performance of the Factset China Robotics and Artificial Intelligence Index, while the semiconductor product will track the performance of the Factset China Semiconductor Index, the spokeswoman said.

Both indices are also new and were officially launched on 30 July, according to Factset’s website. The constituents of both indices are either headquartered or incorporated in China or Hong Kong and may be listed in the Hong Kong Stock Exchange, Shanghai Stock Connect, Shenzhen Stock Connect, NYSE and Nasdaq.

For its thematic ETFs, Global X only invests in companies that have at least 50% of their revenues exposed to a theme, Jay Jacobs, New York-based head of research and and strategy at Global X, said recently.

Thematic push

The roll-out of the new ETFs just comes after Mirae Asset launched three ETFs in January that also invest in China-related themes. They are the Global X China Electric Vehicle ETF, the China Clean Energy ETF and the China Consumer Brand ETF.

Before that, the firm also rolled out the China Biotech ETF and the China Cloud Computing ETF in July last year.

“The objective of our thematic growth ETFs is to offer our investors efficient exposure to growth stories in China,” the firm said previously.

Assets of Mirae Asset’s China thematic ETF range have now reached HK$6.8bn ($880m), according to information from the firm’s website. So far, the largest one is the China Biotech ETF, with assets of HK$2.2bn.

Global X thematic ETFs listed in Hong Kong

China Biotech 2,295
China Electric Vehicle 1,748
China Cloud Computing 1,635
China Consumer 637.7
China Clean Energy 531.5
Total 6,847
Source: Mirae Asset

With the launch of the new products, the firm now manages seven China-focused thematic ETF products. The firm also has four other ETFs that track broader indices and five leveraged and inverse products, according to data from the SFC.

There are other China-focused thematic products in Hong Kong’s ETF market, including the Premia CSI Caixin China New Economy ETF, which has HK$2.1bn in assets, and the Samsung CSI China Dragon ETF, which has HK$281.45m, according to data from the Hong Kong Exchange.

Meanwhile, other firms have opted to launch thematic ETFs with a global mandate. Nikko Asset Management, for example, entered Hong Kong’s ETF market last year with the launch of the Nikko AM Global Internet ETF, which now has an AUM of HK$178.7m, exchange data shows.

The firm followed up with a second global thematic product last month, the Nikko AM E-Games Active ETF, now having assets of HK$171m.

Part of the Mark Allen Group.