Solactive is pleased to announce its collaboration with Hana Asset Management and The Korea Economic Daily Index (KEDI) on the 1Q Xiaomi Value-Chain Active ETF, which tracks the Solactive-KEDI Xiaomi Focus China Tech Index. Focused on the leading Chinese consumer electronics and smart devices company Xiaomi, the index provides the targeted exposure to the Xiaomi and other leading Chinese tech companies.
China’s technology sector continues to show a strong growth, buoyed by robust domestic demand and strategic government support. The Ministry of Industry and Information Technology (MIIT) shows that the combined operating revenues of major electronic information manufacturing firms reached RMB 16.19 trillion in 2024, representing 7.3% YoY growth.[1] This dynamic environment has positioned companies within the tech sector for significant expansion. Xiaomi is projected to record a strong 32% YoY revenue growth in Q2 2025 to RMB 117 billion, and a 66% increase in adjusted net profit to RMB 10.3 billion. This impressive performance reflects not only Xiaomi’s solid foundation in smartphones but also its strategic diversification into the electric vehicle market and its rapidly expanding Internet of Things (IoT) ecosystem. With the substantial investments in R&D and its forward-looking “Human × Car × Home” smart ecosystem strategy, Xiaomi exemplifies how China’s leading technology firms are driving innovation and contributing to the country’s emergence as a global leader in technology.[2]
The Solactive-KEDI Xiaomi Focus China Tech Index is constructed under a rule-based methodology. Xiaomi Corp (1810.HK) is included as a permanent component with a fixed weight of 25%. The remaining 14 constituents are selected from Hong Kong-listed companies, headquartered in China or Hong Kong that operate in technology and communications sectors. The selection is based on the total market capitalization, subject to liquidity filters. The top three non-Xiaomi constituents are each weighted at 8%, with the balance equally distributed among the rest, ensuring a diversified yet strategically targeted exposure.
The ETF listed on 2nd September on the Korean Stock Exchange under ticker code 0094X0.KS
Timo Pfeiffer, Chief Markets Officer at Solactive, commented: “We are delighted to partner with Hana Asset Management and KEDI to bring this targeted China tech exposure to the market, offering the investors a way to participate in the Xiaomi growth and other leading Chinese tech companies in this prominent sector”
Sunghyun Kim, Head of ETF/Quant Solution Division at Hana Asset Management, commented: “We are pleased to collaborate with Solactive to introduce the world’s first Xiaomi Value Chain ETF. This ETF provides investors with a new opportunity to access China’s fast-growing technology sector, with Xiaomi at the center as a leader in smart devices, IoT, and innovations extending to areas such as electric vehicles. Hana Asset Management will continue to develop ETF products that enable domestic investors to participate in global innovation trends with ease and confidence.”
[1] China’s electronic information manufacturing sector posts fast growth in 2024, Xinhua, February 7, 2025
[2] 2Q25 Preview: expect strong earnings backed by IoT/EV momentum and solid smartphone, CMB International Global Markets |Equity Research
