German-based index provider Solactive, has expanded its thematic offering with the launch of two Chinese equity products in cloud computing and biotech industries.
Mirae Asset Global Investments, one of the world’s leading ETF providers, has licensed both indices for the launch of two ETFs for investors wanting to gain exposure to China’s booming technology sector.
The Mirae Asset Horizons China Cloud Computing ETF (2826), which tracks the Solactive China Cloud Computing Index, and the Mirae Asset Horizons China Biotech ETF (2820), which tracks the Solactive China Biotech Index, are set to list in Hong Kong with expense ratios of 0.68%. Mirae has had a busy July having also launched a real estate ETF in South Korea last week.
Mirae’s cloud computing ETF includes companies headquartered in either China or Hong Kong and derive their revenue from internet retail, software and IT services, packaged software and data processing services. Gartner, the global research and advisory firm, forecasts the cloud computing industry to grow by 17.5% through 2019 and expect the global revenue to expand to $214.3bn by year's end.
Timo Pfeiffer (pictured), head of research at Solactive, said in a statement: “Cloud computing revolutionised the way in which we use, store, and access our data.
“Personally, it gives me – in both my professional and private environment – the opportunity to work remotely or access my favourite music without having to worry about local storage.”
Similar to 2826, Mirae’s biotech ETF includes companies headquartered in either China or Hong Kong but are active in either the biotechnology or pharmaceuticals industries. Research company Global Market Insights forecasts the global biotech industry to grow at a compound growth rate of 9.9%, reaching $775bn expected annual revenue in 2024.
Pfeiffer adds: “There is sheer force of innovation in life-science and biotech, with a lot of revenue being put back into R&D.
“Hong Kong has become a key hub for Biotech IPOs, and our new index takes advantage of this emerging centre of innovation.”