Korea Investment Trust Management Signs Cooperation Agreement with CUAM for Entry into Hong Kong ETF Market

Korea Investment Trust Management announced on the 18th that it had signed a strategic cooperation agreement with China Universal Asset Management Hong Kong (CUAM HK) to jointly enter the Hong Kong exchange-traded fund (ETF) market.

CUAM, established in Shanghai, China in 2005, is an asset management company that has distinguished itself in the active fund sector. As of the end of September, CUAM managed approximately 280 trillion won in assets, and operates subsidiaries not only in mainland China but also in Hong Kong, the United States, and Singapore. Among these, the Hong Kong subsidiary serves as a key platform for expanding both domestic and international business.

Under the terms of the cooperation agreement, Korea Investment Trust Management will advise CUAM on entering the Hong Kong ETF market, providing support from the product planning stage through to management. Based on this advisory partnership, CUAM will introduce a variety of new products.

The core of the collaboration between the two companies is the "ETF Connect" scheme. ETF Connect is a program promoted by the China Securities Regulatory Commission (CSRC) and the Hong Kong Securities and Futures Commission (SFC), which allows cross-trading between designated ETFs listed in mainland China and Hong Kong. It has been implemented since July 2022 to enhance investment accessibility between the two markets, and the range of ETFs eligible for cross-trading has been steadily expanding. Korea Investment Trust Management and CUAM plan to utilize this scheme to improve mainland Chinese investors' access to overseas assets.

Paik Jaekyu, President of Korea Investment Trust Management, stated, "ETF Connect is a scheme that allows mainland Chinese investors to access overseas assets without the limitations of the Qualified Domestic Institutional Investor (QDII) quota. As demand for overseas investment within mainland China continues to grow, we expect this partnership will enable us to provide a diverse range of ETF solutions to meet that demand."

Zhang Hui, CEO of CUAM, explained, "CUAM is strengthening its ETF business capabilities based on its active management experience. Through this partnership, we look forward to exploring more diverse ETF product opportunities in the Hong Kong and Asian markets."

Paik Jaekyu, President of Korea Investment Trust Management (right), and Jang Hui, CEO of CUAM, are taking a commemorative photo after signing a strategic cooperation agreement on the 18th. Korea Investment Trust Management.

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