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 Robotics and AI 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.
- Robotics and artificial intelligence sector is sensitive to risks including small or limited markets for such securities, changes in business cycles, world economic growth, technological progress, rapid obsolescence, and government regulation. These companies rely on significant spending on research and development and tend to be more volatile than securities of companies that do not rely heavily on technology.
- 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.
Monthly Commentary on Global X China Robotics and AI ETF (2807)
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The growing attention to AI: After the booming use of ChatGPT, there has been a growing interest in AI. The potential of AI to transform various industries has led to increased investment in AI-based technologies. As a result, the share prices of many companies have rebounded as investors flocked to take advantage of this trend.
China robotics and automation cycle: We believe China’s prompt reopening process will drive a higher capital investment appetite for Chinese companies in 2023. However, this anticipated trend may be partially postponed by the growing concerns about the global economic slowdown. Such concerns could cause uncertainty around the investment plans of some export-oriented Chinese companies. Based on the latest PMI data points, we see signs of US and Europe industrial activities slowing down.
Quality automation solution might gain global market share: As China quickly passes the reopening disruptions, we see a growing interest for Chinese companies to resume global expansion plans. Many industrial products and solutions have been well developed in the past few years, and this could accelerate their global penetration with corporates’ focus and improved sales support.