Mirae Asset, First Global Asset Manager to Cross-List Hong Kong 'High Dividend' ETF in China

Mirae Asset Global Investments announced on the 7th that it has additionally cross-listed the 'Global X Hong Kong ETF' on mainland China. This marks the first entry of a Hong Kong high-dividend ETF into China among global asset managers.

Mirae Asset Global Investments' Hong Kong branch began trading the ‘Global X Hang Seng High Dividend Yield ETF’ on the Shanghai/Shenzhen Stock Exchanges in China starting from the 6th local time.

The ‘Global X Hang Seng High Dividend Yield ETF’ tracks the Hang Seng High Dividend Index. With net assets of approximately KRW 353.7 billion, it is currently the largest high-dividend ETF listed on the Hong Kong Stock Exchange. The annualized dividend yield based on the March payment is about 8.24%, boasting an excellent track record of over 10 years. Recently, as the Hong Kong stock market has emerged from a prolonged slump and continued its rebound, expectations for market recovery have been rising.

Since July 2022, cross-trading of ETFs between mainland China and the Hong Kong Stock Exchange has become possible. Both exchanges select ETFs eligible for cross-trading through a review process based on certain qualification criteria. To register on the mainland China exchanges, ETFs must meet stringent requirements such as ▲having been listed for at least six months as of the listing date ▲maintaining an average daily AUM of 1.7 billion HKD (approximately KRW 300 billion) over the past six months ▲and investing in Hong Kong stocks, among other criteria.

In November last year, Mirae Asset Global Investments became the first domestic asset management company to enter the mainland China ETF market by cross-listing the ‘Global X Hang Seng TECH ETF’. With this additional listing, the number of Global X Hong Kong ETFs available for trading in the mainland China ETF market has increased to two. Notably, while most Hong Kong ETFs cross-listed in China so far have been related to Hang Seng Tech, the ‘Global X Hang Seng High Dividend Yield ETF’ is the first high-dividend ETF.

Mirae Asset Global Investments, which first entered Hong Kong in 2003 as the first domestic asset management company, is accelerating its efforts to target the mainland China ETF market based on its expertise in the Hong Kong market. As of April, the total net assets of ETFs managed by Mirae Asset Global Investments' Hong Kong branch amount to approximately KRW 2.4 trillion.

Mirae Asset Global Investments is also conducting various activities in China and Hong Kong. For 18 years, it has been running a program that introduces and tours Korean youth to local economies, cultures, and companies in China. It also engages in social contribution activities such as volunteering at elderly welfare centers in Hong Kong. Mirae Asset plans to continue its social contribution efforts to support local community development.

Kim Young-hwan, CEO of Mirae Asset Global Investments, stated, "In addition to the Hang Seng Tech and Hang Seng High Dividend ETFs that have entered the mainland China ETF market, we have plans for further cross-listing registrations." He added, "Going forward, Mirae Asset Global Investments will strive to actively promote its products to institutional and retail investors in China by expanding its product lineup and strengthening local sales personnel."

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