Mirae carries out second engagement with Solactive, releasing three additional thematic ETFs tracking the development of the Chinese market
Despite increasing international uncertainties, China retained solid growth in 2019. According to the National Bureau of Statistics in China, the country is set to reach its economic growth target of 6% to 6.5% in 2019. With an expanding purchasing power throughout a growing middle class, Chinese companies are coming off as one of the winners of interlinking markets and increasing globalization. To allow investors to benefit from this development, Mirae Asset launches three distinct thematic ETFs tracking companies active in the provision of Clean Energy, the development of Electric Vehicles, and engaged in offering Consumer-Oriented goods and services, respectively.
“After the release of two innovative thematic ETFs tracking Chinese Biotech and Cloud Computing companies in the summer of 2019, we are very happy to help bringing the next thematic launches of Mirae Asset to life,” says Timo Pfeiffer, Chief Markets Officer at Solactive. “The latest installments give investors the opportunity to participate in China’s swiftly growing economy and its massive potential in the technological sector.”
Two of the three ETFs track companies with long-term exposure to growing technological sectors. The Solactive China Clean Energy Index measures the performance of Chinese companies that are active in the field of Clean Energy. According to the Chinese government, renewable energy accounted for 38.4% of China’s power capacity in 2019. As the Clean Energy industry continues to gain more momentum, investors will now have an additional investment vehicle to participate in this growing trend.
According to a study conducted by the International Energy Agency (IEA), China is the largest Electric Vehicle market and continues to grow. IEA’s Global EV Outlook 2019 expects China to maintain its number one spot of the EV market until 2030 and projects a 57% share of the EV market in the country. With significant regulatory efforts conducted in 2019, such as the restriction of investment in new internal combustion engine vehicle manufacturing plants, it is expected that the Chinese market for Electric Vehicles will advance even more. Investors engaging in the new ETF tracking the Solactive China Electric Vehicle Index may benefit from this development.
The last ETF mirrors the Solactive China Consumer Brand Index, which represents Chinese companies from industries where the brand name is of significant importance for the consumer. In order to capture fast-changing consumer trends in China, the selection of index components is dependent on relevant short-term revenue growth.
Mr. JH Rhee, Chief Executive Officer of Mirae Asset Global Investments (HK) Ltd., said: “China is fast becoming a global innovation leader within the consumer and environmental areas, with exciting stories of corporate creativity that are reshaping the consumption and energy landscape around the world. The launch of these new ETFs, among the first since acquiring the Global X platform last year, builds on our promise to provide unique and innovative ETF products and investment solutions, and provides investors a forward-looking investment approach that embraces the disruptive changes that are rapidly reshaping China.”
All three ETFs were issued on January 17th on the Hong Kong Stock Exchange (HKEX).