Global X China Global Leaders ETF

Risk Disclosures

Investors should not base investment decisions on this website alone. 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 the principal. Investors should note:

Global X China Global Leaders ETF’s (the “Fund’s”) 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 Fund may invest in small and/or mid-sized companies. The stock of small-capitalisation and mid-capitalisation companies may have lower liquidity and their prices are more volatile to adverse economic developments than those of larger capitalisation companies in general. The Fund’s investments are concentrated in companies which are either headquartered or incorporated in Mainland China, Hong Kong or Macau. The Fund’s value may be more volatile than that of a fund with a more diverse portfolio.
China is an emerging market. The Fund invests in Chinese companies which may involve increased risks and special considerations not typically associated with investments 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 Fund’s unit (the “Unit”) on the Stock Exchange of Hong Kong is driven by market factors such as demand and supply of the Unit. Therefore, the Units may trade at a substantial premium or discount to the Fund’s net asset value.
The Fund’s synthetic replication strategy will involve investing up to 50% of its net asset value in financial derivative instruments (“FDIs”), mainly funded total return swap transaction(s) through one or more counterparty(ies). Risks associated with FDIs include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. FDIs are susceptible to price fluctuations and higher volatility, and may have large bid and offer spreads and no active secondary markets. The leverage element/component of an FDI can result in a loss significantly greater than the amount invested in the FDI by the Sub-Fund.
As part of the securities lending transactions, there is a risk of shortfall of collateral value due to inaccurate pricing of the securities lent or change of value of securities lent. This may cause significant losses to the Fund. The borrower may fail to return the securities in a timely manner or at all. The Fund may suffer from a loss or delay when recovering the securities lent out. This may restrict the Fund’s ability in meeting delivery or payment obligations from realisation requests.

China’s Dominance On The World Stage Continues – The Case For China’s Global Leaders

Global X China Global Leaders ETF

Delivers targeted exposure to leading Chinese companies that have significant overseas presence in terms of revenue and customers.

Stock Code
3050 (HKD)^#
Underlying Index
China Global Leaders Index^{^}
AUM¹ (as of )
HK$
Ongoing Charges Over A Year²
0.68%
Inception Date
10 Mar 2021
Product Details^#

Factsheet

Why Invest?

High Growth Potential

Global X China Global Leaders ETF enables investors to access high growth potential through Chinese companies that have emerged as global leaders in their respective industries.

Targeted Exposure

The fund offers targeted exposure to globally competitive Chinese companies that have significant overseas presence in terms of revenue and customers.

ETF Efficiency

In a single trade, the fund delivers access to dozens of globally competitive Chinese companies.

The Case For China’s Global Leaders

Since implementing the first wave of market reforms in 1978, China has achieved economic growth at an unprecedented rate. Its embrace of globalization and the relentless scaling up of its manufacturing and export sectors have been some of the leading drivers of China’s economic miracle. Led by the country’s drive to achieve technological advancement, China’s manufacturers have rapidly moved up the value chain and many have achieved global competitiveness and growing market share in high-tech manufacturing.

China’s Exports Continue To Show Resilience Amid Headwinds

China’s transformation into a powerhouse of global trade is remarkable considering that only four decades ago it was a closed economy that accounted for less than 2% of global exports.³ In the ensuing years China succeeded in building an industrial base of unparalleled depth and scale and by 2009 it overtook Germany as the world’s biggest exporter. As of November 2020, the country’s share of global exports surpassed 14%⁴ and its vast ecosystem of manufacturers and suppliers have integrated deeper into global value chains. Even amid intensifying competition with the United States and the outbreak of COVID-19, China’s exports have shown remarkable resilience and the world’s reliance on Chinese manufacturing remains as high as ever.

SHARE OF GLOBAL EXPORTS OF SELECTED COUNTRIES

Source: IMF Data, UBS Research & Mirae Asset Global Investments, 2021.

YEAR ON YEAR MONTHLY GROWTH OF CHINA’S EXPORTS AND INDUSTRIAL VALUE ADDED IN 2020

Source: CPB World Trade Monitor, NBS & Mirae Asset Global Investments, 2021.

China’s Exporters Move Up The Value Chain

As well as achieving an expansion in capacity, China’s manufacturers have been able to move up the value chain into knowledge intensive industries through rapid upgrades in technology. A 2018 study conducted by the National Science Board of the United States revealed that China had gained a 24% global share in high-tech manufacturing output by 2016 from just 8% in 2003.⁶ This move up the value chain is reflected in the increasing amount of high value-added intermediate and capital goods that are being produced domestically rather than being bought from abroad. And the rise in the share of intermediate and capital goods in China’s export product mix shows its increasing importance as a supplier in the global supply chain.

SHARE OF CHINA’S INTERMEDIATE, CAPITAL AND CONSUMPTION GOODS IN WORLD EXPORT SUPPLY

Source: UN Comtrade & UBS , 2020.

China Continues To Expand Its Trade Agreements

Amid a global environment of resurgent protectionism, the signing of the Regional Comprehensive Economic Partnership (RCEP) in November 2020 by China along with 14 other signatories in the Asia Pacific is projected to benefit regional trade. Covering 30% of the world’s population and GDP⁶, the RCEP is China’s first plurilateral trade agreement, and according to some studies, China is projected to be biggest beneficiary in terms of income gains, alongside Japan and Korea. Similarly, the EU-China Comprehensive Agreement in Investment, which was announced by China and the European Union to have been agreed in principal on 30 December 2020, demonstrated China’s commitment to forging closer ties with its major trading partners.

REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP

Source: New Zealand FAT & Mirae Asset Global Investments, 2021.

ANNUAL BREAKDOWN OF CHINESE INVESTMENT TO EU

Source: MOFCOM & Mirae Asset Global Investments, 2021.

^ Underlying Index: FactSet China Global Leaders Index.

1.Source: Mirae Asset Global Investments.
2.As the Fund is newly set up, this figure is an estimate only and represents the sum of the estimated ongoing charges over a 12-month period, expressed as a percentage of the estimated average net asset value over the same period. It may be different upon actual operation of the Fund and may vary from year to year. For the first 12-month period from the launch of the Fund, the ongoing charges figure is capped at 0.68% of the average net asset value of the Fund. Any ongoing expenses exceeding this percentage during this period will be borne by the Manager and will not be charged to the Fund.
3.Source: International Monetary Fund, 2021.
4.Source: World Trade Organization, 2020.
5.Source: National Science Board, January 2018.
6.Source: New Zealand Foreign Affairs & Trade, 2021.

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