Global X China Consumer Brand ETF

Risk Disclosures
Investors should not base on this document alone to make investment decision. Please refer to the Prospectus for details including the product features and the risk factors. Investment involves risks. There is no guarantee of the repayment of principal. Investor should note:

Global X China Consumer Brand ETF (the “Fund”) investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer specific factors.
The performance of companies in the consumer sector are correlated to the growth rate of the global market, individual income levels and their impact on levels of domestic consumer spending in the global markets, which in turn depend on the worldwide economic conditions, which have recently deteriorated significantly in many countries and regions and may remain depressed for the foreseeable future.
China is an emerging market. The Fund invests in Chinese companies which may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risk, currency risks, political risk, legal and taxation risks, and the likelihood of a high degree of volatility.
The trading price of the Unit on the SEHK is driven by market factors such as demand and supply of the Unit. Therefore, the Units may be trade at a substantial premium or discount to the Sub-Fund’s net asset value.

The Rise of Premium Consumer Brands in China

In a Single Trade, Capture 30 Premium China Consumer Brands

Global X China ConsumerBrand ETF

Factsheet Product Details^#

2806 HKD / 9806 USD

Stock Code (Read more)

China Consumer
Brand Index^

Underlying Index

HK$ ...

AUM¹ (---)

0.68%

Ongoing Charges
Over A Year²

2020/01/16

Inception Date

Factsheet Product Details^#

Burgeoning Middle Class Demands Better Quality Products

China’s middle class is growing substantially, and it is expected that 76% of China’s urban population will cross the threshold of middle income by 2022.³
By 2027, it is estimated that 1.2 billion Chinese will be middle class, accounting for 25% of the world total.⁴

2027

1.2 billion
Chinese middle class

2020

76% of China’s
urban population
will enter the
middle income
bracket

Middle class urban
household earnings
at US$9,000 to
US$34,000 a year

Middle class urban household earnings at US$9,000 to US$34,000 a year

Many Chinese companies have upgraded the quality of their products to satisfy their customers’ rising expectations on quality.

Approximately 33% of the population in China’s Tier 1 and 2 cities and 57% in Tier 3 and 4 cities now prefer domestic brands over foreign ones in 13 out of 19 surveyed product categories.⁵

In 2018, consumption contributed to 76.2% of China’s total GDP growth, making it the largest driver of economic growth for the fifth consecutive year. ⁶

A FEAST WITH BAIJIU

After work, the Yao family frequently enjoys hotpot at a famous Chinese chain restaurant and the adults order premium Chinese Baijiu to go with their meal.

Chinese have a taste for high-end baijiu and China’s leading baijiu producers have joined the ranks of the world’s most valuable drinks companies⁹.

High-end Baijiu segments are growing significantly faster than the average Baijiu market¹⁰

Product Details

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^ Underlying Index: Solactive China Consumer Brand Index

. Source: Mirae Asset Global Investment.
The ongoing charges figure is an annualized figure based on the expenses for the period from 1 April 2020 to 31 December 2020. It represents the sum of the ongoing expenses chargeable to the Sub-Fund for the above period expressed as a percentage of the Sub-Fund’s average Net Asset Value over the same period, annualized to give an ongoing charges figure over a year. This figure may vary from year to year.
Source: China Briefing, 13 February 2019.
Source: The Brookings Institution, 12 October 2020.
Source: McKinsey, 18 December 2019.
Source: Deloitte, 19 November 2019.
Source: Company data, Euromonitor, Morgan Stanley, January 2020.
Source: World Bank 2015 GDPs. Meituan and Dianping 2016 data. Quartz Analysis.
Source: Bloomberg, as of 11 December 2020.
Source: Bernstein, as of April 2018. Estimated volume growth (compounded) 2016 – 2000.
Source: Frost & Sullivan, J.P. Morgan estimates.

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