Mirae Asset Global Investments (Hong Kong) has announced that Citi Warrants will launch warrants based on the Global X China Electric Vehicle and Battery ETF in Hong Kong, a first for this market as it is the only non-broad-based, thematic growth exchange-traded fund (ETF) to be linked to warrants.
The warrants, which use the Global X China Electric Vehicle and Battery ETF as their underlying asset, offer investors an alternative way to get exposure to the ETF. Launched in January 2020, the ETF enables investors to access high-growth potential through companies critical to the development of electric vehicles (EVs) and batteries in China.
Recognized as one of Hong Kong’s best-performing ETFs in terms of total return by Hong Kong Exchanges and Clearing in 2020, the ETF saw its assets under management surpass US$1 billion in August 2021.
Citi Warrants launching a warrant based on the Global X China Electric Vehicle and Battery ETF “amplifies the growing importance of diversification in Hong Kong’s ETF market”, says Jung Ho Rhee, CEO of Mirae Asset Global Investments.
Guillaume Besson, head of listed structured products, at Citigroup Global Markets Asia, points out the warrant offers “investors access to the buoyant Chinese EV market”.
The Global X China Electric Vehicle and Battery ETF seeks to track the performance of the Solactive China Electric Vehicle and Battery Index, and provides exposure to Chinese companies that are critical to the development of EVs and batteries.