SOL China Consumer Trend ETF Featuring 'Labubu'

From Moutai to Pop Mart: Investing in Key Companies Leading China's New Consumption Trends

Shinhan Asset Management will list the 'SOL China Consumer Trend' ETF on the Korea Exchange on November 25, offering investors the opportunity to focus on newly emerging companies amid rapidly changing consumer patterns in China.

This ETF incorporates the 'new consumption' trend into its strategy, reflecting structural changes such as shifts in China's demographic structure, generational replacement among consumers, the rise of content intellectual property, and the rapid growth of the lifestyle industry.

The Chinese consumer market is currently undergoing significant structural changes. Until the 2010s, status-oriented consumption-centered on premium liquor, luxury goods, jewelry, and high-end cars-dominated the market. However, with the rise of Millennials & Gen Z, consumption standards have quickly shifted toward preferences, experiences, personal satisfaction, and self-expression. As a result, the drivers of growth across products, brands, and industries are being redefined, drawing increasing attention from the market.

Kim Junghyun, Head of ETF Business at Shinhan Asset Management, explained, "Chinese consumption is now shifting from the era of Moutai to the era of Pop Mart. Rather than displaying relationships and status as in the past, personalized consumption-such as enjoying, sharing, and collecting-is now leading the market."

He further emphasized, "This trend is not a simple fad, but a fundamental transformation driven by demographic changes, rising income levels, urbanization, and the expansion of the digital consumption ecosystem. Because the pace of change is so rapid, it is becoming increasingly important to select companies that are leading new cultural trends."

The SOL China Consumer Trend ETF consists of a total of 10 stocks. The new consumption growth axis is categorized into three segments: collectible consumption, experiential consumption, and new lifestyle consumption, with core companies selected for each category.

Key holdings include Pop Mart, which leads the collection culture among Millennials & Gen Z with its proprietary art toy intellectual property such as 'Labubu'; Laopu Gold, which combines traditional gold craftsmanship with modern design to appeal to younger consumers; Star Shine Holdings, which operates IP-based merchandise and experiential spaces; and ANTA Sports, the leading sportswear company in China. The portfolio also includes other new consumption growth companies such as DPC Dash, Alibaba Pictures Group, and MIXUE Group.

Kim added, "While most new China ETFs this year have focused on innovative technology sectors such as AI and humanoids amid the strong performance of the Chinese stock market, the SOL China Consumer Trend ETF aims to fill a gap in the market by focusing on the structural changes in Chinese consumption."

He continued, "China's new consumption companies are expanding their competitiveness not only in the domestic market but also globally, so this product will allow investors to proactively respond to new trends in Chinese consumption."

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