Important Information

Investors should not base investment decisions on this website alone. Please refer to the Prospectus for details including product features and the risk factors. Investment involves risks. Past performance is not indicative of future performance. There is no guarantee of the repayment of the principal. Investors should note:

  • Global X Hang Seng TECH ETF (the "Fund") seeks to provide investment results that, before deduction of fees and expenses, closely correspond to the performance of the Hang Seng TECH Index (the “Index”).
  • The Fund’s investments are concentrated in companies with a technology theme. Technology companies are often characterised by relatively higher volatility in price performance. Companies in the technology sector also face intense competition, and there may also be substantial government intervention, which may have an adverse effect on profit margins. These companies are also subject to the risks of loss or impairment of intellectual property rights or licences, cyber security risks resulting in undesirable legal, financial, operational and reputational consequences.
  • The Fund’s investments are concentrated in securities listed on the Stock Exchange of Hong Kong (the "SEHK") of companies that are active in technology sector may result in greater volatility in the value of the Fund than more diverse portfolios which comprise broad-based global investments. The value of the Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the technology sector.
  • The Index is subject to concentration risk as a result of tracking the performance of securities incorporated in, or with majority of revenue derived from, or with a principal place of business in, the Greater China region. The Fund’s NAV is therefore likely to be more volatile than a broad-based 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.
  • The trading price of the Fund unit (the “Unit”) on the SEHK 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.
  • Dividends may be paid from capital or effectively out of capital of the Fund, which may amount to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment and result in an immediate reduction in the Net Asset Value per Unit of the Fund.

Global X Hang Seng TECH ETF (2837)

Capturing the High Growth Potentials of Hong Kong Innovative TECH

In recent decades, there has been a clear global trend of shifting from traditional industries to new economies. While banks and energy producers were previously key drivers of economic growth, today's growth is primarily driven by the technology sector. The most popular new economy index for investors is the NASDAQ 100 index, which invests in US tech stocks. In Hong Kong, the equivalent is the Hang Seng TECH Index, which invests in the 30 largest technology companies with exposure to key themes such as cloud, digital, e-commerce, Fintech, internet, and autonomous.

In a single trade, the Global X Hang Seng TECH ETF (2837) delivers access to the 30 largest technology companies listed on the Hong Kong Stock Exchange.

THE HANG SENG TECH STRATEGY, EXPLAINED

Watch this video to learn more about Global X Hang Seng TECH ETF (2837)

Hang Seng TECH Index Offers Exposure to China's Tech Unicorn Boom

China's economy has undergone a significant transformation in recent years, evolving from a factory-driven model to a leading force in the tech industry. China's rising internet penetration rate has enabled it to become a global leader in mobile payments and e-commerce, while the COVID-19 pandemic has accelerated the pace of business digitization and led to tremendous growth in China's cloud companies.

Additionally, advanced battery technology, competitive pricing, and generous government policies have helped a handful of homegrown Chinese electric vehicle companies emerge as top sellers worldwide. With increasing numbers of unicorns seeking to list in Hong Kong, and Chinese companies representing three of the top five most valuable unicorns, the Hang Seng TECH Index is an ideal option for those looking to capture growth opportunities in the region.

The Case for China's Internet Sector After China's Reopening

China’s internet sector represents the largest weight of the Hang Seng TECH Index at nearly 55%. 1,2 With the regulation releases, the overall environment for the internet sector becomes more positive. This sets the stage for a gradual recovery in revenue and earnings growth for relevant companies. Additionally, as China relaxes its COVID-19 control measures, the 3-year impact on consumer spending and the macro economy is at a turning point, presenting a promising growth prospects for the internet sector in FY23.

While online platforms may revert to a cash-intensive approach to attract new users or increase consumer spending, we anticipate a more cautious attitude towards expenditures. Instead of exorbitant spending on sales and marketing efforts, internet businesses are likely to prioritize sustainable growth by enhancing efficiency and implementing cost-control measures.

Consequently, the industry should experience improvements in both company fundamentals and valuation multiples. For instance, the risk of ADR de-listing has significantly diminished due to the US PCAOB's favorable audit inspection results for ADRs, eliminating immediate de-listing threats for US-listed Chinese internet companies.

Since 2021, Chinese internet firms have augmented share buybacks and dividend distributions to boost shareholder returns. Nevertheless, compared to their US counterparts, China's internet sector continues to trade at a roughly 20% discount (as of 9 January 2023, based on Bloomberg data) even after experiencing a marked upswing since mid-November. This suggests potential for further valuation multiple recuperation, accompanied by a resurgence in earnings growth.

2837Global X Hang Seng TECH ETF

Stock Code2837 (HKD)#
Underlying Index**Hang Seng TECH Index
Total Net Asset Value* (As of )HKD $
Ongoing Charges Over A Year
0.45%
Inception Date29 Mar 2023

# Investment involves risk. Before making any investment decision to invest in the Fund, investors should read the Fund’s Prospectus for details and the risk factors. Visit Global X ETFs Hong Kong website for more details relating to this Fund (including but not limited to the Fund’s iNAV, market price, performance, daily holdings and tracking difference / error).
* Source: Mirae Asset Global Investments (Hong Kong) Limited.

**The Underlying Index is a net total return, modified free float-adjusted market capitalization weighted index. A net total return index reflects the reinvestment of dividends or coupon payments, after deduction of any withholding tax (including any surcharges for special levies, if applicable).

Why Invest?

High Growth Potential

Global X Hang Seng TECH ETF enables investors to access high potential growth through 30 largest technology or innovative companies listed on the Hong Kong Stock Exchange with total market capitalisation of approximately HKD 9.8 trillion^.

^Hang Seng Indexes, as of 28 Mar 2023.

Selected Technology Themes

Convenient, cost-effective access to businesses highly related to selected technology themes: Cloud, Digital, E-Commerce, FinTech, Internet, or autonomous activities.

ETF Efficiency

In a single trade, the fund delivers access to dozens of companies with high exposure to the Hang Seng TECH Index constituents at a charge up to 0.45%.

Research & InsightsChina Internet Sector Outlook

Expect revenue and earnings growth of China internet companies to recover gradually into FY23. Learn more to unlock growth opportunities in China's internet sector after China's reopening.

Research & InsightsThe Hang Seng TECH Strategy, Explained

Discover the benefits of investing in the Hang Seng TECH Index's high growth business and how they capture opportunities in : Cloud, Digital, E-Commerce, FinTech, Internet, or autonomous activities.

Explore More Products

1. Include Tencent, BABA, Kuaishou, Meituan, JD, NetEase, Baidu, Bilibili, Trip.com and China Literature.
2. Source: according to Hang Seng Index, as of 29 Mar 2023.

This website is intended for Hong Kong investors only. Your use of this website means you agree to our Terms of use . This website is strictly for informational purposes only and does not constitute a representation that any investment strategy is suitable or appropriate for an investor’s individual circumstances. In 2018, Global X was acquired by Mirae Asset Global Investments and Mirae Asset Global Investments Co., Ltd. is the parent company of Mirae Asset Global Investments (Hong Kong) Limited.

The information contained in this website is for information purposes only and does not, constitute any recommendations, offer or solicitation to buy, sell or subscribe to any securities or financial instruments in any jurisdiction. Investment involves risk. It cannot be guaranteed that the performance of the Product will generate a return and there may be circumstances where no return is generated or the amount invested is lost. Past performance is not indicative of future performance.

Before making any investment decision to invest in the Product, investors should read the Product’s prospectus for details and the risk factors. Investors should ensure they fully understand the risks associated with the Product and should also consider their own investment objective and risk tolerance level. Investors are advised to seek independent professional advice before making any investments.

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