Mirae Asset Global Investments has launched two thematic exchange traded funds in Hong Kong, offering retail and institutional investors access to Chinese companies that stand to benefit from increased adoption of robotics and artificial intelligence as well as the growing semiconductor industry in the country.
Global X China Robotics & AI ETF and Global X China Semiconductor ETF started trading on August 7 on the Hong Kong Stock Exchange in both Hong Kong and US dollars. Global X China Robotics & AI ETF has the tickers 2807 (HKD) and 9807 (USD) while Global X China Semiconductor ETF has the tickers 3191 (HKD) and 9191 (USD).
Global X China Robotics & AI ETF seeks to capture Chinese leaders in robotics and AI. "Faced with a declining workforce and rising labour costs, China is increasingly looking to robotics and AI to safeguard its manufacturing competitiveness. Smart robots and AI have seen significant growth in adoption in China in recent years as technological advances have lowered costs and paved the way for robotics to enter into a wide range of new industries," the company said in a statement. "As the Chinese government looks to transform the country from a traditional manufacturing economy to a high-tech superpower, robotics and AI adoption will be at the heart of this transformation."
Global X China Semiconductor ETF offers exposure to China’s fast-evolving semiconductor industry. Says Mirae Asset: “With US-China tensions intensifying, China is determined to foster a self-sufficient and globally competitive domestic chip industry. Heavy spending on research and development, significant state subsidies, and a major recruitment drive to attract talent have helped the country’s homegrown chipmakers grow rapidly in recent years. With China making bold strides in the development of next generation technologies such as robotics, internet of things, 5G and autonomous driving, which all depend on advanced chips as an essential technological component, China’s status as the world’s largest consumer of semiconductors is likely to continue and its domestic companies are poised to benefit.”
Chief executive officer Jung Ho Rhee says robotics, AI and semiconductor production are interconnected components that will play a key part in China’s technology transformation and economic growth, and the two new ETF products offer investors exposure to the vast potential of China’s technology sector.