Mirae Asset 'TIGER China Electric Vehicle SOLACTIVE ETF' 3-Month Cumulative Return 39.7%

Mirae Asset Global Investments announced on the 28th that the ‘TIGER China Electric Vehicle SOLACTIVE ETF’ has recorded a cumulative return of over 39% in the past three months. Following the Chinese government's active announcement of economic stimulus measures, the previously sluggish stock prices are showing a rebound trend.

According to the Korea Exchange, as of the closing price on the 27th, the cumulative return of the ‘TIGER China Electric Vehicle SOLACTIVE ETF’ over the past three months is 39.66%. The leveraged type, ‘TIGER China Electric Vehicle Leverage ETF,’ which tracks twice the daily return, recorded a return of 81.42% during the same period.

The ‘TIGER China Electric Vehicle SOLACTIVE ETF’ invests in the Chinese electric vehicle value chain, focusing on companies with global competitiveness in the global electric vehicle and secondary battery industries. Major investment stocks include CATL and BYD. These two companies account for more than 50% of the global battery market share and continue to expand their share this year.

Since September, the Chinese government has consecutively announced substantial economic stimulus measures through Politburo meetings and Ministry of Finance press conferences. The Chinese stock market is rebounding significantly as the government, which had been passive about economic stimulus, shows strong determination. Additionally, prospects are positive as there is a high possibility of expanding stimulus measures in response to tariff retaliation from the U.S. Trump administration.

In particular, consumption indicators are expected to recover due to the stimulus measures, benefiting the ‘TIGER China Electric Vehicle SOLACTIVE ETF.’ To overcome the long-term domestic demand slump, the Chinese government is implementing a consumption promotion policy called ‘Igu Hwan Sin (以舊換新, exchanging old for new).’ For global electric vehicles, subsidies are provided when switching to new energy vehicles such as electric and hybrid cars, which is expected to boost the performance of related companies like BYD.

Senior Manager Ho-nyeon Lee of Mirae Asset Global Investments’ ETF Management Division said, "Despite the significant rebound in the Chinese stock market since September this year, the valuation attractiveness of major companies such as BYD and CATL remains attractive when viewed by the forward PER over the past five years." He added, "The ‘TIGER China Electric Vehicle SOLACTIVE ETF’ is expected to directly benefit from such Chinese economic stimulus measures."