Global X ETFs Launches ETF Providing Exposure to China’s Rapidly Emerging Biotech Industry

Thursday, 24. September 2020 17:05

NEW YORK, Sept. 24, 2020 (GLOBE NEWSWIRE) -- Global X ETFs, the New York-based provider of exchange-traded funds (ETFs), today announced the launch of the Global X China Biotech Innovation ETF (CHB). The fund will join the firm’s family of thematic growth ETFs and will invest in leading China-based companies in the country’s emerging field of biotechnology.

Regulatory easements and support from the Chinese government have helped propel China’s biotech industry to become the world’s second largest. Biotechnology is specifically named as a Strategic Emerging Industry and prioritized by Beijing’s Made in China 2025 and 13th Five Year Plan initiatives.1 Following a 2018 rule change at the Hong Kong Stock Exchange, which helps attract Chinese biotech firms, 17 mainland Chinese biotech firms raised $5.12 billion through IPOs in Hong Kong.2

Despite its recent growth, the industry may soon reach a key inflection point, as substantial research and development efforts begin to yield greater commercial results. China’s biotech industry is estimated to be just one-tenth the size of the United States’, but the number of annual biotechnology patents granted in China now exceeds the number in the United States. And biotech research publications from academia have grown in the country by an average of 20% per year.3

“Biotech has the potential to truly transform healthcare, by potentially unlocking treatments to previously incurable diseases and offering improvements to our general health,” said Chelsea Rodstrom, research analyst at Global X ETFs. “Leveraging our experience in thematic investments, as well as our expertise on Chinese markets, we believe that CHB accesses a key segment of the market and are excited to watch this space continue to grow.”

The fund will track the Solactive China Biotech Innovation Index, which includes biotech companies headquartered in Hong Kong or China. Firms eligible for inclusion include US-listed ADRs, Hong Kong-listed securities, and China A-shares available on the Stock Connect platform.

About Global X ETFs

Global X was founded in 2008 with the mission of listening to and empowering clients to invest wisely in unexplored and intelligent solutions. Our product lineup features more than 70 ETF strategies. While we are distinguished for our Thematic Growth, Income and International Access ETFs, we also offer Core, Commodity, and Alpha funds to suit a wide range of investment objectives. Global X is a member of Mirae Asset Global Investments Group, a Seoul-based global enterprise which offers asset management expertise worldwide. Explore our ETFs, research and insights, and more at www.globalxetfs.com.

Media Contact:

Frank Taylor / Stephanie Dressler
Dukas Linden Public Relations
frank@dlpr.com / stephanie@dlpr.com
(646) 808-3647 / (949) 269-2535

Risk Information:

Investing involves risk, including the possible loss of principal. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Investments in securities in the Biotechnology and Health Care sectors can be affected by government regulations, rapid product obsolescence, intense industry competition and loss or impairment of patents or intellectual property rights. Technology companies and companies that rely heavily on technology tend to be more volatile than the overall market, and are also heavily dependent on patent and intellectual property rights. Securities focusing on a single country and narrowly focused investments may be subject to higher volatility. A-Shares may be subject to frequent and widespread trading halts and may become illiquid. Trading suspensions in certain stock could lead to greater market execution risk and costs for the Fund, and the creation and redemption of Creation Units4 may also be disrupted. CHB is non-diversified.

Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Indices are unmanaged and do not include the effect of fees, expenses or sales charges. One cannot invest directly in an index.

Carefully consider the Fund’s investment objectives, risks, and charges and expenses before investing. This and other information can be found in the Fund’s summary or full prospectuses, which may be obtained at www.globalxetfs.com. Please read the prospectus carefully before investing.

Global X Management Company LLC serves as an advisor to Global X Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Global X Management Company LLC or Mirae Asset Global Investments. Global X Funds are not sponsored, endorsed, issued, sold or promoted by Solactive AG, nor does Solactive AG make any representations regarding the advisability of investing in the Global X Funds. Neither SIDCO, Global X nor Mirae Asset Global Investments are affiliated with Solactive AG.

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1 U.S.-China Economic and Security Review Commission, “China’s Biotechnology Development: The Role of US and Other Foreign Engagement,” Feb 14, 2019.
2 Bloomberg, “First China Biotech IPO in Two Years Lands in U.S.,” Jan 7, 2020.
3 U.S.-China Economic and Security Review Commission, “China’s Biotechnology Development: The Role of US and Other Foreign Engagement,” Feb 14, 2019.
4 The Fund will only issue or redeem shares that have been aggregated into blocks of 50,000 shares or multiples thereof known as Creation Units.

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