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 Asia Semiconductor 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.
Semiconductor industry may be affected by particular economic or market events, such as domestic and international competition pressures, rapid obsolescence of products, the economic performance of the customers of semiconductor companies and capital equipment expenditures. These companies rely on significant spending on research and development that may cause the value of securities of all companies within this sector of the market to deteriorate.
Some Asian securities exchanges (including Mainland China) may have the right to suspend or limit trading in any security traded on the relevant exchange. The government or the regulators may also implement policies that may affect the financial markets. Some Asian markets may have higher entry barrier for investments as identification number or certificate may have to be obtained for securities trading. All these may have a negative impact on the Fund.
The Fund invests in emerging markets which may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk, currency devaluation, inflation 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.
The investment objective of Global X China Semiconductor ETF’s (the “Fund”) is to provide investment results that, before fees and expenses, closely correspond to the performance of the FactSet China Semiconductor Index.
The Fund is exposed to concentration risk by tracking a single region or country.
The Index constituents may be concentrated in a specific industry or sector, which may potentially more volatile than a fund with a diversified portfolio.
Semiconductor industry may be affected by particular economic or market events, such as domestic and international competition pressures, rapid obsolescence of products, the economic performance of the customers of semiconductor companies and capital equipment expenditures.
Investment in Emerging Market, such as A-share market, 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 Stock Connect is subject to quota limitations. Where a suspension in the trading through the Stock Connect is effected, the Sub-Fund’s ability to invest in A-Shares or access Mainland China markets through the programme will be adversely affected.
Listed companies on the ChiNext market and/or STAR Board are usually subject to higher fluctuation in stock prices and liquidity risks, over-valuation risk, differences in regulation, delisting risk, and concentration risk.
There are risks and uncertainties associated with the current Mainland China tax laws, regulations and practice in respect of capital gains realized via Stock Connect on the Fund’s investments in Mainland China. Any increased tax liabilities on the Fund may adversely affect the Fund’s value.
The trading price of the Fund’s unit on the SEHK is driven by secondary market trading factors, which may lead to a substantial premium or discount to the Fund’s net asset value.
The Fund’s synthetic replication strategy may invest up to 50% of its net asset value in financial derivative instruments (“FDIs”), which may expose the Fund to counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. The Fund may suffer losses from its usage of FDIs.
The Manager may at its discretion pay dividends out of the capital of the Fund. Distributions paid out of capital, represent a return of an investor’s original investment or its gains and may potentially reduce the Fund’s Net Asset Value per Share as well as the capital available for future investment.
The Fund may suffer from a losses or delays when recovering the securities lent out. This may potentially affect its ability to meet payment and redemption obligations. Collateral shortfalls due to inaccurate pricing or change of value of securities lent, may cause significant losses to the Fund.

How CXMT Completes Global X China Semiconductor ETF

By: Global X HK ETF Research

Changxin Memory (CXMT) went public last week, and based on the index methodology, CXMT was included in the China Semiconductor ETF and Asia Semiconductor ETF early this week.

What does this fast-track inclusion mean for the China Semiconductor ETF?

With this inclusion, the Global X China Semiconductor ETF now reflects the whole sector much more comprehensively. The semiconductor sector can be broadly divided into sub-industry of Chip design, Memory, Foundry, Packaging & test, and Equipment.

As shown in the below table, this ETF has long been a vehicle for investing in China’s top semiconductor companies across almost all areas. Chip design includes Cambricon and Hygon; Foundry includes SMIC and Hua Hong; Equipment includes NAURA, AMEC, Piotech, and Hwatsing Tech; and Packaging includes Tongfu and JCET.

Yet, one specific area had remained empty until now: the DRAM memory, which is a core component of AI semiconductors. With CXMT going public and the ETF reflecting it now, this major gap has now been successfully filled.

The ETF’s key holdings across semiconductor sub-industries

Sub-industry	Key Holdings	Main Business
Chip Design (fabless)	Cambricon, Hygon, GigaDevice, Montage	AI semiconductor design, CPU/DCU processor design, Flash memory & MCU design, Memory interface chip design
Memory	CXMT, Biwin Storage	DRAM (China’s only general-purpose DRAM maker), NAND flash storage & modules
Foundry	SMIC, Hua Hong	China’s largest foundry (7nm~28nm, etc.), Specialty process & power semiconductor foundry
Packaging & Test	JCET, Tongfu, Changchuan	Global Top 3 OSAT company, AMD’s major packaging partner, Semiconductor test equipment & solutions
Equipment Makers	NAURA, AMEC, Piotech, Hwatsing	Etching & Deposition equipment, Etching equipment (with global competitiveness), Thin-film deposition (PECVD) equipment, CMP equipment

(Source) Mirae Asset Global Investments (HK)

Of course, the ETF is not yet perfect. Key players like YMTC, a leader in NAND flash, and Huawei, the godfather of Chinese semiconductors, remain unlisted. However, YMTC is expected to go public before the end of the year. While Huawei has no plans to list, its technological breakthroughs serve as a vital catalyst for the growth of other domestic equipment and foundry companies. In other words, Huawei’s achievements are effectively reflected through the performance of these other semiconductor firms.

Impressive progressive

Looking back, the Chinese semiconductor industry has undergone a massive transformation over the past few years. Just three years ago, the constituents of this ETF looked vastly different. At that time, Chinese semiconductor firms did exist, but most were focused on low-end and power semiconductors. By 2026, however, the sector has become densely populated with companies producing high-performance logic and AI memory. This raises significant anticipation for what the Chinese semiconductor landscape will look like in next three years.

Unique characteristics of China’s semiconductor

Meanwhile, China’s comprehensive coverage of every sub-industry within the semiconductor industry is highly exceptional. No other country demonstrates this specific pattern. For instance, South Korea focuses heavily on memory, while Japan is structured mainly around equipment makers. Taiwan revolves around foundries as its core strength. The U.S. is exceptionally strong in chip design, but it remains vulnerable in manufacturing and foundries.

In conclusion, holding the Global X China Semiconductor ETF is equivalent to capturing an entire semiconductor world in a single portfolio.

Relevant products

CXMT was included in the following ETFs under the index methodology’s large-cap fast-entry rule.

Disclaimer

This document contains the opinions of Mirae Asset Global Investments (Hong Kong) Limited (“MAGIHK”) and is intended for your use only.

It is not a solicitation, offer or recommendation to buy or sell any security or other financial instrument and shall not constitute any form of regulated financial advice, legal, tax or other regulated service. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed. MAGIHK makes no representation as to their accuracy or completeness and therefore do not accept any liability for a loss arising from the use of this document.

Investment involves risk. Forecasts, past information and estimates have certain inherent limitations. Statements concerning financial market trends or portfolio strategies are based on current market conditions, which will fluctuate. There is no guarantee that these opinions are suitable for all investors and each investor should evaluate their ability to invest for the long term, especially during periods of downturn in the market. Outlook and strategies are subject to change without notice.

Past performance information presented is not indicative of future performance. Before making any investment decision, investors should read the fund’s offering document for further details including the risk factors. Investors should ensure they fully understand the risks associated with the applicable investment and should also consider their own investment objective and risk tolerance level. Investors are advised to seek independent professional advice if in doubt.

Issuer: Mirae Asset Global Investments (Hong Kong) Limited (Licensed by the Securities and Futures Commission for Types 1, 4 and 9 regulated activities under the Securities and Futures Ordinance). This document has not been reviewed by the Securities and Futures Commission or the applicable regulator in the jurisdiction which this article is posted and no part of this publication may be reproduced in any form, or referred to in any other publication, without express written permission of MAGIHK.