TIGER China Hang Seng Tech Net Assets Surpass 100 Billion Won

[Asia Economy Reporter Junho Hwang] Mirae Asset Global Investments' 'TIGER China Hang Seng Tech ETF,' which invests in Chinese innovative companies representing new growth industries, surpassed 100 billion KRW in net assets on the 9th, just two months after its listing. This is the first time in the industry that a Hang Seng Tech ETF has exceeded 100 billion KRW in net assets.

The TIGER China Hang Seng Tech ETF invests in innovative companies representing new growth industries among Chinese mainland companies listed on the Hong Kong market. It invests in leading Chinese tech companies such as Alibaba and Tencent, which generate profits based on core technologies in growth industries and lead innovation through active research and development. Since its inception in December last year, this ETF has recorded a return of 22.75%.

The underlying index is the Hang Seng Tech Index. The constituent stocks belong to the IT, consumer discretionary, industrials, financials, and healthcare sectors, targeting companies engaged in cloud, digital, e-commerce, fintech, and internet businesses. It consists of the top 30 companies by market capitalization that meet liquidity requirements and either operate internet and mobile platform businesses, invest more than 5% of sales in research and development (R&D), or have an annual sales growth rate exceeding 10%. Rebalancing is conducted quarterly.

The TIGER China Hang Seng Tech ETF is managed using a full replication strategy to closely track the volatility of the underlying index and does not implement separate currency hedging.

Mirae Asset TIGER ETFs have been steadily introducing overseas investment products to the market. In December last year, three ETFs were listed: TIGER Global Cloud Computing INDXX ETF, Korea's first global new growth theme ETF; TIGER China Electric Vehicle SOLACTIVE ETF; and TIGER China Biotech SOLACTIVE ETF. In particular, the TIGER China Biotech SOLACTIVE ETF has attracted market attention this year by increasing in size by more than 400 billion KRW.

Investing in overseas ETFs through pension accounts allows deferral of taxation on capital gains and dividends, and taxation is applied at a low pension income tax rate (3.3~5.5%), providing tax-saving benefits.