KB Lists ETF Targeting 15 Chinese AI and Semiconductor Firms
KB Asset Management, a subsidiary of South Korea's KB Financial Group, launched its "RISE China AI Semiconductor Top 4 Plus" ETF on the Korea Exchange on March 10. The new fund is designed to provide investors with targeted exposure to China's efforts to build a domestic AI infrastructure and secure its semiconductor supply chain.
The ETF tracks the Solactive China AI Semiconductor Top 4 Plus Index, which is composed of 15 companies accessible via Hong Kong listings or the Stock Connect program. The index includes foundational companies such as foundry SMIC, AI chip designer Cambricon, optical module makers InnoLight and TFC, and automation specialist Horizon Robotics. Its methodology assigns a 15% fixed weight to the largest company in four key sub-sectors: semiconductor foundries, AI chips, optical communication modules, and materials & equipment.
Launch Meets Korean Demand for Chinese Tech Topping $5.8M
The product launch directly addresses a clear and growing appetite among South Korean investors for Chinese technology assets. According to data from the Korea Securities Depository for the month ending March 9, investors funneled significant capital into Chinese equities. Net purchases included $5.89 million into semiconductor firm Montage Technology and $7.52 million into A-share listed SANY Heavy Industry.
In its official announcement, KB Asset Management highlighted that China's strategic push for self-reliance in core technologies like AI chips and large language models is a central policy objective. This government-backed initiative provides a strong tailwind for companies in the ETF's portfolio, as demand for domestic AI infrastructure, cloud computing, and high-performance computing components continues to expand.
