Mirae Asset Launches Investment Fund for Innovative Companies on Shanghai Stock Exchange

Investment in Top 50 Stocks on the STAR Market of the Shanghai Stock Exchange, China's Nasdaq Equivalent

[Asia Economy Reporter Minwoo Lee] Mirae Asset Global Investments is launching an equity fund product that invests in innovative companies listed on the Shanghai Stock Exchange.

On the 16th, Mirae Asset Global Investments announced the launch of the equity fund "Mirae Asset China STAR Market Fund," which invests in the top 50 stocks listed on the Shanghai Stock Exchange's STAR Market.

The STAR Market (科創板, Kechuangban) is a securities market established last July on the Shanghai Stock Exchange to facilitate capital raising for technology innovation companies in China. It is an abbreviation of "Science and Technology Innovation Board" and is modeled after the Chinese version of NASDAQ, listing advanced industry companies in next-generation information technology (IT), new materials, new energy, biotechnology, and advanced equipment manufacturing.

The market adopts a registration-based initial public offering (IPO) system for listing, allowing rapid listing upon meeting specific requirements such as revenue, cash flow, net assets, and research and development (R&D) investment criteria. It also applies a simplified delisting procedure, operating under a trading system separate from existing Chinese stock exchanges. The daily price limit is set at ±20%, which is higher volatility compared to the existing market limit of 10%.

The Mirae Asset China STAR Market Fund employs a strategy investing in major stocks of the STAR 50 Index. It focuses on the top 50 stocks by free-float market capitalization within the STAR Market Composite Index and selectively invests in stocks expected to grow in the future. For operational efficiency, it may invest partially in China-related equity exchange-traded funds (ETFs) and participate in IPOs of newly listed STAR Market stocks. The fund does not conduct separate currency hedging, so its performance may be affected by exchange rate fluctuations.

Subscriptions to the product are available through Mirae Asset Daewoo, Shinhan Financial Investment, Yuanta Securities, Hana Financial Investment, DB Financial Investment, among others, with plans to continuously expand sales channels. Im Myung-jae, Head of WM Marketing Division at Mirae Asset Global Investments, stated, "Through this product, investors can benefit from the industrial upgrading led by the Chinese government by investing in unicorn companies (startups valued at over 1 trillion KRW) within China." He added, "For foreigners, only Qualified Foreign Institutional Investors (QFII, RQFII) can access the STAR Market, making investment through the fund the most efficient way."

This content was produced with the assistance of AI translation services.