Launching New ETFs and Strengthening Corporate Analysis... Financial Investment Industry Targets the Japanese Market

Hanwha Asset Management Launches Japanese Semiconductor Materials and Components ETF
Hana Securities Introduces 'En Carry Lab'... KB Securities Strengthens Analysis of Japanese Companies and Industries

Investor interest in Japan is growing this year due to the strong performance of the Japanese stock market and the weak yen phenomenon. The financial investment industry is actively developing Japan-related products and making local investments to meet this demand.

According to the Korea Exchange on the 31st, the ARIRANG Japan Semiconductor Materials and Equipment Solactive Exchange-Traded Fund (ETF) issued by Hanwha Asset Management will be newly listed on the KOSPI market. This ETF is a thematic ETF that invests exclusively in Japanese semiconductor materials and equipment companies listed on the Tokyo Stock Exchange.

Currently, there are eight Japan-related ETFs listed domestically, including six that track basic stock indices, one yen futures ETF, and one real estate investment trust (REIT). This is the first time a thematic ETF investing in specific Japanese industries and companies has been listed. It is also the first new Japan-related ETF listing in over three years since 2020. Considering that China has 40 related ETFs, including 15 thematic ETFs, Japan-related ETFs have been relatively rare.

Hana Securities launched the 'Yen Carry Lab' on the 29th, which allows simultaneous investment in the yen and U.S. Treasury bonds. Yen Carry Lab is a product that invests in U.S. Treasury bond ETFs listed on the Japanese stock market using yen. Investors can expect interest income from U.S. Treasury bonds and bond price gains from falling interest rates. Additionally, yen gains from the Bank of Japan's monetary policy shift can also be enjoyed.

In addition to product launches, there is a trend toward strengthening analysis of Japanese companies. Earlier this month, KB Securities reorganized its Emerging Markets Team into the Asia Markets Team within the Asset Allocation Strategy Department and expanded its focus on Japanese stock analysis. KB Securities provides forecasts and investment strategies for the Japanese Nikkei index as part of its asset allocation strategy and plans to sequentially publish analysis reports on about 20 major promising stocks, mainly in sectors where Japan's competitiveness stands out, such as technology, consumer goods, and trading companies. A KB Securities official said, "We plan to provide balanced analysis so that investors can make informed investment decisions based on sufficient information about the Japanese market, which has recently attracted investor interest and capital flows."

Local investment in Japan is also expanding. Last month, Korea Investment & Securities succeeded in issuing Samurai bonds for the first time in the domestic securities industry. Samurai bonds are yen-denominated bonds issued by foreign companies or governments in the Japanese bond market. Korea Investment & Securities plans to use the raised funds for local investments in Japan.

The financial investment industry's active efforts to discover Japan-related investment products and make local investments are due to the recent surge in investor interest in Japan. This year, the Japanese stock market has shown strength, and a favorable investment environment has been created due to the weak yen phenomenon. Also, as China has been relatively sluggish, investors looking for new investment destinations have shifted their attention to Japan. According to the Korea Securities Depository's SaveRo, domestic investors have net purchased $382.23 million (approximately 506.4 billion KRW) in Japanese stocks from the beginning of this year to the 29th. During the same period last year, net purchases were only $21.35 million.

A private banker (PB) at a securities firm said, "Inquiries about Japanese investments have been increasing recently," adding, "The Japanese Nikkei index has reached its highest level in 33 years this year, showing strength, and combined with the weak yen phenomenon, interest in the yen and Japanese stock market has grown."

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