[Asia Economy Reporter Junho Hwang] Mirae Asset Global Investments announced on the 21st that the net assets of the 'TIGER China Electric Vehicle SOLACTIVE ETF' have surpassed 4 trillion KRW. This is the first overseas stock ETF listed on the Korea Exchange to exceed 4 trillion KRW in net assets.
As of the closing price on the 20th, the net assets of the TIGER China Electric Vehicle SOLACTIVE ETF recorded 4.0551 trillion KRW. This is the largest scale among overseas stock ETFs listed on the Korea Exchange and the second largest among all ETFs.
This ETF is a product that invests in the Chinese electric vehicle value chain and was listed in December 2020.
The ETF tracking index is the 'SOLACTIVE China Electric Vehicle Index.' This index includes 20 stocks related to Chinese electric vehicles listed on the Chinese A-shares, Hang Seng Index, and U.S. exchanges.
China is pursuing policies to phase out internal combustion engine vehicles and expand the supply of eco-friendly electric vehicles at the government level. Chinese electric vehicle and secondary battery-related companies are also showing growth trends.
This product can be used as a pension product from a long-term investment perspective to enjoy tax benefits. When traded within a pension account, transaction taxes are exempted, and capital gains and dividends are taxed at a low rate as pension income tax at the time of pension receipt.
A representative from Mirae Asset Global Investments said, "In March and April, China’s electric vehicle sales were 520,000 and 330,000 units respectively, an increase of 122% and 44% compared to the same period last year. With the lifting of the lockdown in Shanghai, where many electric vehicle-related companies such as Tesla are located, normalization is underway," adding, "China is continuously implementing consumption stimulus measures for automobiles, home appliances, etc., as the government announces policies for stable economic growth, and the penetration rate of new energy vehicles is only 2.9%, indicating high growth potential."
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