Mirae Asset bets on China as Korean investors’ US focus draws concern

South Korea’s leading asset manager Mirae Asset Financial Group is increasingly unveiling China-focused investment products as Chairman Park Hyeon-joo warns against Korean investors’ growing overexposure to US assets.

Next month, Mirae Asset is set for the Korea Exchange debut of its TIGER China Tech Top 10 exchange-traded fund (ETF), which will focus on Chinese tech giants such as Xiaomi, Alibaba and Tencent.

The Korea Exchange’s review of the TIGER China Tech Top 10 is in its final stages, with the listing scheduled for May 13, industry sources said on Sunday.

The financial group’s flagship unit, Mirae Asset Global Investments Co., is also preparing to list additional China-focused ETFs, expanding its offerings to include thematic funds targeting high-growth sectors in China, sources said.

This marks Mirae Asset’s first new China-focused ETF since the launch of the TIGER China Electric Vehicle Leverage ETF in May 2023.

EDUCATING INVESTORS ON CHINA INVESTMENT

In tandem with product diversification, the group is enhancing investor education efforts for its China investments.

In mid-April, Mirae Asset published the TIGER China ETF Guidebook, providing research results on leading industries, including humanoid robotics, semiconductors and electric vehicles in China.

Mirae is also holding investor seminars at securities and banking branches to introduce its China-related products, such as the TIGER China Hang Seng Tech and TIGER China Electric Vehicle ETFs.

Separately, Mirae Asset Securities Co. is stepping up efforts to boost Chinese exposure within client portfolios, particularly through its private banking (PB) centers.

The brokerage house has dispatched its PB teams to China for on-site visits to companies including top global EV and battery maker BYD.

Last week, Mirae hosted a “China Day” event, holding an investor relations session targeted at domestic institutional investors, including the National Pension Service (NPS) and the Korean Teachers’ Credit Union (KTCU).

COMPELLING ALTERNATIVE

Mirae Asset’s renewed focus on China stems from growing concerns that Korean investors’ portfolios are becoming excessively concentrated in US assets.

While urging investors to pivot from the overvalued US market to emerging Chinese opportunities, Park recently said at seminars that “Chinese companies, which are rapidly gaining price and technological competitiveness, present a compelling alternative.”

With the US stock market gradually showing signs of slowdown in recent months, other Korean asset managers are also turning their attention toward China.

Interest in Chinese artificial intelligence technology has surged following the emergence of DeepSeek earlier this year, spurring a wave of new ETF offerings centered on Chinese tech names.

Hanwha Asset Management Co. plans to soon launch the PLUS China AI Tech Top 10 ETF, while Timefolio Asset Management Co. is preparing to list the active TIMEFOLIO China AI Tech Active ETF next month.

Write to Su-Ji Na at suji@hankyung.com

In-Soo Nam edited this article.