Mirae Asset ETF to make Chinese debut

Mirae Asset Global Investments is making its foray into China’s exchange-traded fund market, becoming the first Korean asset management firm to do so.

The Global X Hang Seng Tech ETF, operated by the asset manager’s ETF arm in Hong Kong, will be set up for trading on China’s Shanghai Stock Exchange and Shenzhen Stock Exchange from Nov. 6.

The ETF tracks the Hang Seng Tech index, a gauge of the 30 largest Chinese tech shares listed on the Hong Kong Stock Exchange. Through the ETF, Chinese investors will be able to invest in the companies without being limited by the government’s regulations on offshore investments, the firm said.

Cross-border trading is enabled by the Hong Kong-China ETF Connect scheme established in 2022, which provides mutual stock market access between mainland China and Hong Kong for eligible ETFs. Under tight restrictions, only six ETFs listed on the Hong Kong bourse were available for trading in mainland China.

With the upcoming cross-border trading, Mirae Asset hopes more of its ETFs listed in Hong Kong can make their way into the Chinese market. As of end-September, China’s ETF market is worth about 360 trillion won ($266 billion), making it the second-largest in Asia following Japan, the firm said.

“As a global asset manager that strives to offer innovative investment solutions, we were able to become the first Korean asset manager to make way in the mainland Chinese ETF market,” said Kim Young-hwan, head of Mirae Asset Global Investments.

“We will continue to work to expand the lineup, offering competitive global ETF products,” Kim said.

With over 540 ETFs operated across the world, Mirae Asset Global Investments’ total net assets for ETFs amounted to nearly 133 trillion won as of September. Having acquired US ETF provider Global X in 2018, the firm’s business ranges across the US, Japan, Hong Kong, Colombia, Europe and more.

The firm was also the first Korean asset manager to advance into the Hong Kong market with the 2003 launch of a local subsidiary.