NH-Amundi Asset Management Lists 'HANARO Fn Joseon Shipping ETF'

[Asia Economy Reporter Hwang Yoon-joo] NH-Amundi Asset Management is launching an exchange-traded fund (ETF) that invests in domestic shipbuilding and shipping companies leading the global market with overwhelming technological prowess.

NH-Amundi Asset Management announced that it will list the 'HANARO Fn Shipbuilding & Shipping ETF' on the 15th.

South Korea's shipbuilding industry ranked first in the world based on cumulative orders in the first half of the year. Amid strengthening environmental regulations and energy security, demand for LNG carriers has surged, leading to a sharp increase in orders for domestic shipbuilders with overwhelming technological capabilities. This trend is expected to continue in the medium to long term.

The International Maritime Organization (IMO) expanded carbon emission restrictions starting in 2023, increasing replacement and new demand for eco-friendly LNG carriers with low carbon emissions. According to data from the Export-Import Bank of Korea (July 2021), new ship orders are projected to average 36 million CGT (Compensated Gross Tonnage) annually over the next 10 years.

Additionally, demand for LNG carriers is rapidly increasing. This is due not only to the rising demand for natural gas with low carbon emissions but also to the heightened importance of energy security following the outbreak of the Russia-Ukraine war.

Clarkson Research expects that once LNG liquefaction plants currently in construction and design phases become operational, approximately 900 additional LNG carriers will be required.

This product tracks the FnGuide Shipbuilding & Shipping Index. The index is composed of the top 15 stocks by free-float market capitalization weighted method, selected from KOSPI and KOSDAQ listed companies classified under the FICS Industry categories of 'Shipbuilding' and 'Maritime Transport.'

As of September 7, the top constituents of the index include Hyundai Mipo Dockyard (17%), Korea Shipbuilding & Offshore Engineering (16%), Samsung Heavy Industries (16%), Hyundai Heavy Industries (13%), and HMM (11%).

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