Mirae Asset Launches Global X China Little Giant ETF (2815) Offering Niche Markets Investment Opportunities
- Mirae Asset Launches Global X China Little Giant ETF (2815) to invest in 50 state-level specialized enterprises selected by the Chinese government
- Mirae Asset is committed to providing opportunities to invest in China's innovation and technology development
HONG KONG, Nov. 20, 2023 /PRNewswire/ -- Mirae Asset Global Investments (Hong Kong) Limited (the "Company" or "Mirae Asset") announced the launch of Global X China Little Giant ETF (2815) today, providing investors with a diversified and efficient investment opportunity in innovative small and medium-sized enterprises (SMEs) with high growth potential benefiting from China's policy dividends.
The Global X China Little Giants ETF (2815) tracks the Solactive China Little Giants Index, investing in securities of 50 nationally recognized "little giant" enterprises selected by the Chinese government. As China's economy transitions from high-GDP growth to high-quality development, accelerating technological innovation has become a crucial initiative for achieving structural transformation and industrial upgrading. These "little giant" enterprises focus on niche markets, possess strong innovation capabilities, and demonstrate growth potential, aligning with the current needs of China's economy and the development trends of the era, thereby offering vast growth opportunities.
The Global X China Little Giant ETF (2815) invests a group of potential enterprises that possess core specialized technologies and higher investment returns, allowing investors to conveniently and cost-effectively participate in China's rapid growth in strategic sectors such as semiconductors, advanced manufacturing, pharmaceuticals, new energy, etc., enabling them to effortlessly ride the wave of the times.
Mr. Wanyoun CHO, Chief Executive Officer of Mirae Asset Global Investments (Hong Kong) Limited, stated, "We are pleased to launch the Global X China Little Giant ETF (2815), providing investors with a simple and efficient way to invest in China's rapidly growing technology industry. By introducing this ETF into our thematic product lineup, Mirae Asset continues to offer our clients investment products with growth potential. With the transformation of China's overall economic structure and the continued development and upgrading in high-tech fields, we believe that the development of the innovative technology sector will be long-term and sustainable."
The Global X China Little Giant ETF (2815) has a maximum total expense ratio of 0.68% for the first 12 months, applicable to both retail and institutional investors, and can be traded during normal trading hours on the Hong Kong Stock Exchange."
About Mirae Asset Global Investments Group
Mirae Asset Global Investments Group (the "Group") is an asset management organization with over US$212 billion in assets under management as of September 30, 2023. The organization provides a diverse range of investment products, including mutual funds, exchange-traded funds ("ETFs"), and alternatives. Operating out of 22 offices worldwide, the Group has a global team of more than 1,000 employees, including more than 285 investment professionals. [Source: Mirae Asset, September, 2023.]
The Group's global ETF platform features a lineup of 550 ETFs that offer investors high-quality and cost-efficient exposure to newly emerging investment themes and disruptive technologies in the global markets. As of September 2023, the Group's ETFs had combined assets under management of US$98 billion and are listed in Australia, Canada, Colombia, Hong Kong, India, Japan, Korea, Vietnam, the United Kingdom, and the United States. [Source: Mirae Asset, September, 2023.]
About Global X ETFs
Global X ETFs was founded in 2008. For more than a decade, our mission has been empowering investors with unexplored and intelligent solutions. Our product lineup features over 245 ETF strategies and over US$47 billion in assets under management. [Source: Mirae Asset, September, 2023.] While we are distinguished for our Thematic Growth, Income, and International Access ETFs, we also offer Core, Commodity, and Alpha funds to suit a wide range of investment objectives. Global X is a member of Mirae Asset Financial Group, a global leader in financial services, has a presence in 18 global markets, and the Group's managed assets worldwide exceed US$565bn in total AUM. [Source: Mirae Asset, June, 2023.]
Mirae Asset Global Investments (Hong Kong): https://www.am.miraeasset.com.hk/
Global X ETFs Hong Kong: https://www.globalxetfs.com.hk/
Important Information
Investors should not base investment decisions on this material alone. Please refer to the Prospectus for details including product features and the risk factors. Investment involves risks. Past performance is not indicative of future performance. There is no guarantee of the repayment of the principal. Investors should note:
- Global X China Little Giant ETF's (the "Fund's") objective is to provide investment results that, before fees and expenses, closely correspond to the performance of the Solactive China Little Giant Index (the "Index").
- The Index is a new index. The Index has minimal operating history by which investors can evaluate its previous performance. There can be no assurance as to the performance of the Index. The Fund may be riskier than other exchange traded funds tracking more established indices with longer operating history.
- The Fund may invest in small and/or mid-capitalisation companies which may have lower liquidity and their prices are more volatile to adverse economic developments than those of larger capitalisation companies in general.
- The Fund's investments are concentrated in companies which are characterised by relatively higher volatility in price performance. The Sub-Fund may be exposed to risks associated with different sectors and themes including semiconductor, industrial, pharmaceutical, energy and technology. Fluctuations in the business for companies in these sectors or themes will have an adverse impact on the net asset value of the Sub-Fund.
- Some of the companies classified as the Little Giants have a relatively short operating history. Such companies also face intense competition and rapid changes could render the products and services offered by these companies obsolete, which may have an adverse effect on profit margins.
- They may be more susceptible to risks of loss or impairment of intellectual property rights or licences, cyber security risks resulting in undesirable legal, financial, operational and reputational consequences affecting those companies.
- The Mainland China is an emerging market. The Fund invests in Mainland Chinese companies which may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risk, currency risks or control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.
- Securities exchanges in the Mainland Chinese markets typically have the right to suspend or limit trading in any security traded on the relevant exchange. The government or the regulators may also implement policies that may affect the financial markets. All these may have a negative impact on the Fund.
- Listed companies on the ChiNext market and/or STAR Board are subject to higher fluctuation on stock prices and liquidity risk, over-valuation risk, less stringent regulation risk, delisting risk and concentration risk.
- As part of the securities lending transactions, there is a risk of shortfall of collateral value due to inaccurate pricing of the securities lent or change of value of securities lent. This may cause significant losses to the Fund. The borrower may fail to return the securities in a timely manner or at all. The Fund may suffer from a loss or delay when recovering the securities lent out. This may restrict the Fund's ability in meeting delivery or payment obligations from redemption requests.
- The Fund's synthetic replication strategy will involve investing up to 50% of its net asset value in financial derivative instruments ("FDIs"), mainly funded total return swap transaction(s) through one or more counterparty(ies). Risks associated with FDIs include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. FDIs are susceptible to price fluctuations and higher volatility, and may have large bid and offer spreads and no active secondary markets. The leverage element/component of an FDI can result in a loss significantly greater than the amount invested in the FDI by the Fund.
- The trading price of the Shares on the SEHK is driven by market factors such as the demand and supply of the Shares. Therefore, the Shares may trade at a substantial premium or discount to the Fund's Net Asset Value.
- Payments of distributions out of capital or effectively out of capital amounts to a return or withdrawal of part of an investor's original investment or from any capital gains attributable to that original investment. Any such distributions may result in an immediate reduction in the Net Asset Value per Share of the Fund and will reduce the capital available for future investment.
Disclaimer
This document is for Hong Kong investors only. This document is provided for information and illustrative purposes and is intended for your use only. It is not a solicitation, offer or recommendation to buy or sell any security or other financial instrument. The information contained in this document has been provided as a general market commentary only and does not constitute any form of regulated financial advice, legal, tax or other regulated services.
Certain of the statements contained in this document are statements of future expectations and other forward-looking statements. Views, opinions and estimates may change without notice and are based on a number of assumptions which may or may not eventuate or prove to be accurate. Actual results, performance or events may differ materially from those in such statements.
Investment involves risk. Past performance is not indicative of future performance. It cannot be guaranteed that the performance of the Funds will generate a return and there may be circumstances where no return is generated or the amount invested is lost. It may not be suitable for persons unfamiliar with the underlying securities or who are unwilling or unable to bear the risk of loss and ownership of such investment. Before making any investment decision, investors should read the Prospectus for details and the risk factors. Investors should ensure they fully understand the risks associated with the Funds and should also consider their own investment objective and risk tolerance level. Investors are advised to seek independent professional advice before making any investment.
Information and opinions presented in this document have been obtained or derived from sources which in the opinion of Mirae Asset Global Investments (Hong Kong) Limited ("MAGIHK") are reliable, but we make no representation as to their accuracy or completeness. We accept no liability for a loss arising from the use of this document.
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