Press Releases

Mirae Asset to release two innovative Chinese Biotech and Cloud Computing ETFs

Solactive is pleased to announce the release of two thematic indices that capitalize on two significant megatrends that have the capacity to change not only consumer behavior, but also society as a whole. Both the Solactive China Cloud Computing Index and the Solactive China Biotech Index aim to track the individual performance of the twenty largest and most liquid Chinese companies operating in their corresponding sectors. Mirae Asset Global Investments, one of Asia’s major asset managers, licenses both indices for the issuance of two respective ETFs tailored to investors who want to benefit from the growing demand in Cloud Computing as well as the vast innovation in Life Science and Biotech.

For 2019, Gartner projects the entire cloud computing industry to grow by a massive 17.5 percent, resulting in total global revenue of $ 214.3 bn. The Index universe of the Solactive Chinese Cloud Computing Index includes companies headquartered in China or Hong Kong and listed on any of the following stock exchanges: HKEX, Stock Connect, NYSE, and NASDAQ.

“Cloud computing revolutionized the way in which we use, store, and access our data. Personally, it gives me – in both my professional and private environment – the opportunity to work remotely or access my favorite music without having to worry about local storage,” says Timo Pfeiffer, Head of Research at Solactive. “Asian companies picked up quite a pace in the cloud computing trend within the last few years. Our Solactive Chinese Cloud Computing Index leverages on that momentum, giving investors exposure to a fast-growing market.”

The second index that underlies a new Mirae Asset Horizons ETF is the Solactive Chinese Biotech Index. Research company Global Market Insights forecasts the global industry to grow at a compound annual growth rate of 9.9 %, reaching $ 775 bn expected annual revenue in 2024. “There is sheer force of innovation in life-science and biotech, with a lot of revenue being put back into R&D,” comments Timo Pfeiffer. “Hong Kong has become a key hub for Biotech IPOs, and our new index takes advantage of this emerging center of innovation. With Mirae Asset Horizons ETF, we are looking forward to strengthening our footprint within the APAC area.”

The Index universe of the Solactive Chinese Biotech Index also includes Chinese and Hong Kong companies, which are active in either the Biotechnology or the Pharmaceuticals industries, and which are listed on any of the following stock exchanges: HKEX, Stock Connect, NYSE, and NASDAQ.

Mr. JH Rhee, Chief Executive Officer of Mirae Asset Global Investments (HK) Ltd., commented: “Disruptive themes form a key pillar of Mirae Asset Global Investments’ efforts to develop an ETF platform that is client centric and truly built around investors. The addition of Mirae Asset Horizons China Biotech ETF and the Mirae Asset Horizons China Cloud Computing ETF is built on Mirae Asset’s rich heritage as a leading ETF innovator, which has sought to give investors flexible, cost-effective, and diversified exposure to exciting new emerging industries and asset classes.”

He added: “Previously the domain of VC and private equity investors, the launch of the two ETFs marks the opening of the biotech and cloud computing sectors to the wider investor community, allowing them to share in the enormous potential of these two industries.”