Important Information
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 Consumer Brand 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 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 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.
China is Taking a Step Towards Boosting Consumer Goods
On March 13, 2024, the China State Council unveiled new guidelines aimed at encouraging the trade-in of consumer goods in the automotive, home appliance, and furnishings sectors.
As per the policy guidance, the recycling of waste home appliances is targeted to increase by 30% in 2027 compared to the levels in 2023. (Source: The State Council of PRC, 13 March, 2024)
While the specific details regarding subsidies are yet to be disclosed, let’s take a moment to reflect on the success of the previous home appliances trade-in program from 2009 to 2011. During that time, a generous subsidy of RMB 30 billion was provided, leading to an astounding 92.5 million units of home appliances sold, with a retail value of RMB 342 billion. (Source: UBS, data extracted on March 14, 2024)
Stay tuned for more updates on this exciting development.
Learn more about Global X China Consumer Brand ETF (2806) and its risk disclosure: https://www.globalxetfs.com.hk/campaign/china-consumer-brand-etf/