Global X China Electric Vehicle and Battery ETF Races Past US$1 Billion Mark
- The US$1 billion milestone marks increasing investor interest in high-growth potential for China’s electric vehicle industry.
- Low penetration of new-energy vehicles in addition to China’s ambitious plan for purely electric vehicles to become the mainstream of new cars sold by 2035, show innovation-driven market has room to run.
August 25, 2021, Hong Kong – Mirae Asset Global Investments (Hong Kong) Limited (the “firm” or “Mirae Asset”) today announced that the Global X China Electric Vehicle and Battery ETF (stock code: 2845) has surpassed the US$1 billion mark for assets under management. The Fund is the first and only ETF listed in Hong Kong that primarily invests in the China electric vehicle and battery theme.
As the world transitions away from fossil fuels, the world has embraced new ways in support of a green economy. China’s pledge towards carbon neutrality by 2060 will include phasing out coal, switching to green energy and in particular, shifting to electric vehicles.
Despite China’s leading 57% market share of the global electric vehicle market, the country’s single-digit 8.7% penetration rate in new-energy vehicles indicate the industry is fertile ground for innovation and growth. The country’s plan to become a global, automotive powerhouse includes raising electric vehicle sales to 20% by 2025 and for all public vehicles to be fully electric by 2035.
Jung Ho RHEE, Chief Executive Officer of Mirae Asset, said: “China’s sustained dominance in the new energy vehicle and electric vehicle battery market is a result of ongoing technological advances and years of heavy government investment.”
“The country’s early research and development efforts into electric vehicle and battery manufacturing is a testament to its net-zero commitment, and reflects a long-term structural trend. China’s electric vehicle market is a high-growth sector that has much more room to run, given the industry’s position in the early stages of the lifecycle.”
He added: “The Global X China Electric Vehicle and Battery ETF belongs to our suite of thematic ETFs that aims to empower investors with a forward-looking investment approach, and embrace disruptive changes that are rapidly reshaping the world.”
The Global X China Electric Vehicle and Battery ETF (2845 HKD/9845 USD) seeks to track the performance of the Solactive China Electric Vehicle and Battery Index, and provides investors with access to high growth potential through companies critical to the development of electric vehicles and batteries related to electric vehicles in China.