Mirae Asset, First Domestic Asset Manager to Enter Mainland China ETF Market

Hong Kong-Listed Global X Hang Seng TECHETF Cross-Listed on Mainland China Exchanges

Mirae Asset Global Investments announced on the 27th that it will become the first domestic asset management company to enter the mainland China exchange-traded fund (ETF) market.

Global X Hong Kong, an ETF management subsidiary of Mirae Asset Global Investments, will begin trading the ‘Global X Hang Seng TECH ETF’ on the Shanghai/Shenzhen Stock Exchanges in China starting November 6. Local Chinese investors will now be able to trade Mirae Asset Global Investments’ ETFs through mainland exchanges without offshore investment restrictions.

The ‘Global X Hang Seng TECH ETF’ tracks the Hang Seng TECH Index and diversifies investments across 30 innovative companies representing China’s emerging industries among IT and technology-based firms listed on the Hong Kong Stock Exchange.

Since July 2022, cross-trading of ETFs between mainland China and Hong Kong stock exchanges has been possible. Both exchanges select ETFs eligible for cross-trading through a review process based on certain qualification criteria. To be registered on mainland exchanges, ETFs must meet stringent requirements such as ▲a minimum of six months since listing ▲an average daily AUM of at least 1.7 billion HKD (approximately 300 billion KRW) over the past six months ▲and investment in Hong Kong stocks. Until now, only six Hong Kong-listed ETFs have been available for trading on mainland China exchanges.

The global business capabilities of Mirae Asset Global Investments played a significant role in enabling its ETF to enter the mainland China market. Mirae Asset Global Investments was the first domestic asset manager to enter Hong Kong in 2003 and has grown into a global asset manager by actively conducting business in global markets for 20 years. As of the end of September, the net assets under management of ETFs operated by Mirae Asset Global Investments worldwide reached 133 trillion KRW.

Starting with the ‘Global X Hang Seng TECH ETF,’ Mirae Asset Global Investments expects various Global X Hong Kong-listed ETFs to enter the Chinese ETF market in the future. The Chinese ETF market is valued at approximately 360 trillion KRW as of the end of September, making it the second largest in Asia after Japan. In particular, if the current mainland exchange regulation?which restricts cross-trading to ETFs investing only in Hong Kong stocks?is expanded to include global equity ETFs, Mirae Asset Global Investments, which holds a diverse ETF lineup from the U.S., Japan, Europe, India, and other regions worldwide, is expected to offer a variety of products tailored for local Chinese investors.

Kim Young-hwan, CEO of Mirae Asset Global Investments, said, “We are pleased to be the first Korean asset management company to enter the mainland China ETF market as a result of our efforts to provide innovative investment solutions as a global asset manager. We will continue to strive to expand our product lineup to offer competitive products to local investors in the global ETF market.”

Meanwhile, Global X, an American ETF specialist and rising star, was acquired in 2018 by Park Hyun-joo, Chairman of Mirae Asset Group. Five years after the acquisition, Global X is recognized as a leading thematic ETF provider offering innovative and differentiated ETFs under the catchphrase ‘Beyond Ordinary ETFs’ in global markets including the U.S., Japan, Hong Kong, Colombia, and Europe.