Mirae Asset Global Investments has launched three thematic ETFs offering exposure to developing Chinese technology sectors amid
easing tensions between China and the US
regarding its two year old trade war.
The Global X China Clean Energy ETF (9898), the Global X China Consumer Brand ETF (9806) and the Global X China Electric Vehicle ETF (9856) are listed on the Hong Kong Stock Exchange, all with expense ratios of 0.68%.
Global X has partnered with Germany-based index provider Solactive which provides the benchmarks for the ETFs.
Mirae and Solactive partner for thematic products launch
Tracking the Solactive China Clean Energy index, 9898 offers exposure to China’s renewable energy industry which accounted for 38.4% of the country’s power capacity in 2019. Companies are selected from various industries such as alternative power generation, semiconductors and electric utilities but are removed if they do not meet Solactive’s clean energy standard.
Secondly, 9806 tracks the Solactive China Consumer Brand index. It offers exposure to companies with brand names that are of significant importance for the consumer. The companies are selected depending on the relevant short-term revenue growth.
Finally, 9856 tracks the Solactive China Electric Vehicle index which is comprised of companies involved with the production of electric vehicles. China is the largest electric vehicle market and is forecasted to maintain this position until at least 2030.
Global X rounds off China sector ETF offering
Timo Pfeiffer (pictured), chief markets officer at Solactive, said in a statement: “The latest installments give investors the opportunity to participate in China’s swiftly growing economy and its potential in the technology sector.”
