'KBSTAR ETF' Listed on Chinese Exchange.. MOU with Zhongbosera

Hyunseung Lee, CEO of KB Asset Management (left), and Gao Yang, CEO of Bosera Asset Management, are signing a Memorandum of Understanding (MOU) and taking a photo.

[Asia Economy Reporter Hwang Junho] KB Asset Management signed a business agreement on the 9th with Bosera Asset Management in China for the cross-listing of exchange-traded funds (ETFs). The two companies concluded this agreement ahead of the implementation of the Korea-China ETF cross-listing system being promoted by the Korea Exchange and the Shanghai Stock Exchange.

Once the system is implemented, ETFs listed in Korea can be listed on the Shanghai Stock Exchange through local Chinese asset managers. ETFs listed in China can also be listed on the Korea Exchange as domestic asset manager ETFs. With the full-scale cross-listing of ETFs, mainland Chinese ETFs can be easily traded domestically. For example, if KB Asset Management cross-lists the "Bosera China Consumer Theme ETF" listed on the Shanghai Stock Exchange, it will be listed as the "KBSTAR Bosera China Consumer Theme ETF."

The Chinese ETF market, as of the end of March, has net assets of 210 trillion won, making it the second largest market in Asia. More than 300 diverse ETFs are traded, including representative indices such as CSI300, as well as Chinese dividend stocks and STAR Market ETFs. If domestic ETFs are cross-listed, positive effects on both KB Asset Management and domestic stock market supply and demand can be expected.

Geum Jeongseop, Head of ETF Strategy at KB Asset Management, stated, "Bosera Asset Management is a top-performing large asset manager (with assets under management of 265 trillion won) managing funds for China's national pension, the Social Security Fund, and overseas sovereign wealth funds," adding, "We plan to launch highly preferred and high-performing mainland Chinese ETFs in the domestic market and also list KBSTAR ETFs locally in China."