Hana Asset Management is launching an exchange-traded fund (ETF) that invests in innovative Chinese companies. The company expects that innovative firms such as Xiaomi will experience growth as the Chinese government fosters the artificial intelligence (AI) industry.
On August 27, Hana Asset Management held a press conference in Yeouido, Seoul, and announced that it will list the '1Q Xiaomi Value Chain Active' ETF on September 2.
The ETF will include Xiaomi at a weighting of around 25%, and will also invest in other leading Chinese big tech companies such as Kingsoft Cloud, Alibaba, Sunny Optical, BYD, Q Technology, China Mobile, AAC Technologies, and JD.com. The benchmark index is the 'SOLACTIVE-KEDI XIAOMI FOCUS CHINA TECH INDEX.'
Kim Seungyeon, Head of the ETF and Quantitative Solutions Division at Hana Asset Management, said, "We expect Xiaomi to benefit from the Chinese government's policies to foster the AI industry," adding, "We consider Xiaomi to be the top company in the era of physical AI, which integrates hardware and software."
He further explained, "Since Xiaomi is listed on the Hong Kong Stock Exchange, investors must purchase at least 200 shares, making it less accessible for individual investors." He added, "By utilizing the 1Q Xiaomi Value Chain Active ETF, investing in Xiaomi becomes much easier."
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