Korea Investment Management steps up its entry into Hong Kong’s ETF market... First ETF listed in partnership with CUAM HK

[Financial News] Korea Investment Management is stepping up its entry into Hong Kong’s exchange-traded fund (ETF) market by partnering with a China-based asset manager. The company plans to begin with its first jointly developed product, which invests in global semiconductor companies as well as Chinese and Hong Kong technology stocks, and eventually target investors in mainland China.
Korea Investment Management announced on the 26th that the CUAM Solactive China & Global Semiconductor ETF, which it jointly developed with CUAM HK, the Hong Kong subsidiary of China Universal Asset Management, was listed on the Hong Kong Stock Exchange (HKEX) on the 23rd.
The fund invests across 30 stocks in major semiconductor and related technology companies in China, Hong Kong and global markets. Its holdings include global semiconductor companies such as NVIDIA Corporation, Taiwan Semiconductor Manufacturing Company Limited (TSMC), Samsung Electronics Co., Ltd., ASML Holding N.V. (ASML) and Broadcom Inc., alongside Chinese and Hong Kong technology companies.
The two companies began working-level discussions in April last year and signed a strategic cooperation agreement in November that year to jointly enter Hong Kong’s ETF market. Korea Investment Management will provide non-discretionary investment advice on product planning and development and portfolio construction, while CUAM HK will handle local listing and management, as well as final investment decisions.
The fund also aims to be included in ETF Connect, the cross-border ETF trading scheme between Hong Kong and mainland China. ETF Connect allows mainland Chinese investors to invest in Hong Kong-listed ETFs that meet certain requirements. Whether the fund is actually included will depend on whether it meets the relevant requirements after listing.
To build its initial assets under management, Korea Investment Management also plans to invest about $5 million of its own assets. The two companies will work on developing additional joint ETFs, while Korea Investment Management plans to expand its overseas ETF investment advisory business.
Korea Investment Management President Bae Jae-kyu said, “This marks the starting point for our full-scale entry into the overseas ETF business, building on the competitiveness we have developed in the domestic ETF market.” He added, “Through our partnership with CUAM HK, we will gradually expand our business beyond Hong Kong into mainland China.”
[email protected] Bae Han-geul Reporter