KB Asset Management is joining hands with China Asset Management (ChinaAMC), the No. 1 manager in China's ETF market, to target the Asian ETF market.
KB Asset Management said on the 23rd that it signed a strategic memorandum of understanding (MOU) for cooperation in the ETF business with ChinaAMC at its headquarters in Yeouido, Seoul, on the 22nd. The agreement was prepared to build a long-term cooperation framework connecting the Korean and Chinese ETF markets and to jointly discover new products and business opportunities aimed at global investors.
Chief Executive Kim Young-seong of KB Asset Management and Chief Executive Li Yimei of ChinaAMC, along with key executives from both companies, attended the signing ceremony.
The two companies plan to push for joint development of ETF products linking the Korean and Hong Kong markets, strengthen cooperation on listings on the two countries' exchanges, expand overseas ETF businesses, and enhance collaboration in areas such as market and investment information sharing.
In particular, they will also move to jointly develop indices for new ETFs to be listed in the Korean and Hong Kong markets. In addition, they plan to seek opportunities to enter China's mainland market by using the "ETF Connect" system, which allows investors in both countries to cross-trade eligible ETFs listed on the Hong Kong and Chinese exchanges.
ChinaAMC is a first-generation Chinese asset manager founded in 1998. It currently manages about 665 trillion won in assets, including roughly 150 trillion won in ETF assets, making it the No. 1 player in China's ETF market. It is expanding its business scope beyond mainland China to global markets such as Hong Kong and the United States.
Through this partnership, KB Asset Management plans to combine the product development capabilities it has built in the domestic ETF market with ChinaAMC's local network to introduce differentiated products targeting the Asian market. It also aims to improve overseas investors' access to the Korean market and strengthen the global competitiveness of its ETF business.
Chief Executive Kim Young-seong of KB Asset Management said, "KB Asset Management, Korea's leading asset manager, and ChinaAMC, which represents China's ETF industry, have formed a strategic partnership to create new investment opportunities in the ETF market," adding, "We will combine the product development capabilities accumulated in the domestic ETF market with ChinaAMC's network to prepare differentiated investment solutions."