MOU aims to build long-term cooperation framework for Korea-Hong Kong ETF business; two firms to pursue joint product development and global market expansion

Kim Young-sung (left), CEO of KB Asset Management, and Li Yimei, CEO of China AMC, pose for a photo. [Provided by KB Asset Management]
Kim Young-sung (left), CEO of KB Asset Management, and Li Yimei, CEO of China AMC, pose for a photo. [Provided by KB Asset Management]

KB Asset Management has signed a strategic memorandum of understanding with China AMC (China Asset Management), China's largest exchange-traded fund asset manager, to cooperate on ETF business.

KB Asset Management said Tuesday it signed the strategic MOU at its Yeouido headquarters in Seoul on June 22.

The MOU aims to build a long-term cooperation framework in the Korea-China ETF sector, develop innovative investment products that meet the needs of investors in the two countries and globally, and jointly identify new business opportunities.

The signing ceremony, held at KB Asset Management's Yeouido headquarters on June 22, was attended by KB Asset Management CEO Kim Young-sung, China AMC CEO Li Yimei, and senior executives from both companies.

Under the MOU, the two firms agreed to pursue strategic cooperation across four areas: joint development of ETF products linked to the Korean and Hong Kong markets, cooperation on ETF listings in Korea and Hong Kong, expansion of overseas ETF business cooperation, and exchange of market and investment information.

The two companies plan to push ahead with concrete initiatives — including joint index development to list new ETF products in the Korean and Hong Kong markets — and to enter the Chinese market by leveraging the ETF Connect regime, which allows investors in the two countries to cross-invest in eligible ETFs listed on the Hong Kong and Chinese exchanges.

Through these efforts, the two firms aim to provide diverse investment solutions to investors in both countries and to build a new ETF cooperation model connecting Asian and global capital markets.

China AMC, founded in 1998, is one of the first asset managers to launch a fund in China. It currently manages about 665 trillion won ($433 billion) in assets and ranks first in China's ETF market with approximately 150 trillion won in ETF assets under management. The firm has been expanding beyond mainland China into global markets including Hong Kong and the United States.

"KB Asset Management, a leading Korean asset manager, and China AMC, a leader in China's ETF industry, have formed a strategic partnership to create new investment opportunities together in the ETF market," KB Asset Management CEO Kim Young-sung said. "We are pleased to combine our product development capabilities built in the domestic ETF market with China AMC's network to offer differentiated investment solutions, and to provide overseas investors seeking exposure to the Korean stock market with investment opportunities through KB Asset Management ETFs."

China AMC CEO Li Yimei said it was a meaningful occasion to partner with KB Asset Management, a leading Korean asset manager. "We look forward to presenting innovative products based on both firms' ETF management capabilities and market experience, and to creating new growth opportunities in the ETF market together," she said.

KB Asset Management is one of the fastest-growing asset managers in the domestic ETF market. Its RISE Samsung Electronics SK Hynix Bond Mixed 50 ETF surpassed 4 trillion won in net assets within four months of its February listing, making it the largest bond-mixed ETF by net assets in South Korea, the company said.


th5@heraldcorp.com