Mirae Asset Global Investments announced on May 8 that the cumulative net purchases by individual investors in the 'TIGER China Hang Seng Tech ETF' have surpassed 400 billion KRW for the first time since its listing.
According to the Korea Exchange, as of the closing price on May 7, the cumulative net purchases by individual investors in the TIGER China Hang Seng Tech ETF amounted to 408.6 billion KRW. Since its listing in December 2020, the ETF has established itself as Korea's leading China investment ETF, thanks to steady interest from individual investors, and for the first time, the cumulative net purchases by individuals have exceeded 400 billion KRW.
This year, growing expectations for China's innovative industries, such as AI and autonomous driving, have led to a sharp increase in buying momentum. As of the end of last month, the cumulative net purchases by individual investors since the beginning of the year reached 127.7 billion KRW. Despite recent index adjustments, strong buying has continued, supported by the Chinese government's active technology stimulus policies and sustained expectations for improved performance by tech companies.
The TIGER China Hang Seng Tech ETF is the largest and lowest-cost ETF among Hang Seng Tech ETFs listed in Korea. It has been overwhelmingly favored by individual investors, with net assets reaching 995.5 billion KRW as of May 7. The total expense ratio is 0.09% per year, the lowest among Hang Seng Tech ETFs listed in Korea.
The TIGER China Hang Seng Tech ETF invests in innovative technology companies listed in Hong Kong. It mainly invests in a wide range of innovative tech companies, including the so-called "China M7" core big tech stocks such as Xiaomi, Alibaba, SMIC, Meituan, and Tencent, as well as companies in cloud, fintech, platform, and smart device sectors. These companies possess global competitiveness in advanced technology fields such as artificial intelligence, autonomous driving, and smart home appliances.
Recently, the rise of the Chinese AI company DeepSeek has further heightened expectations for the TIGER China Hang Seng Tech ETF. DeepSeek's LLM model "R1" has attracted market attention by demonstrating performance close to that of OpenAI's GPT-4, leading to a reassessment of China's tech industry.
Jung Hyun Jeong, Head of ETF Management at Mirae Asset Global Investments, stated, "The Chinese government has emphasized its 'AI+' strategy at this year's Two Sessions, further strengthening its support for advanced industries," and added, "As expectations grow for a structural recovery of the Chinese economy centered on innovative tech companies, the investment appeal of the TIGER China Hang Seng Tech ETF is also coming into the spotlight."
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