KB Asset Management is joining hands with China Asset Management (China AMC), China’s top exchange-traded fund (ETF) manager, to expand cooperation in the Asian ETF market.

KB Asset Management said on June 23 it signed a strategic memorandum of understanding (MOU) with China AMC to cooperate in the ETF business. The MOU is aimed at building a long-term cooperation framework in the Korean and Chinese ETF businesses and jointly developing investment products to meet demand from investors in both countries and globally.

The two companies agreed to pursue joint development of ETF products linked to the South Korea and Hong Kong markets, cooperation on listing ETFs in South Korea and Hong Kong, expanded cooperation in overseas ETF business, and exchanges of market and investment information. They also plan to work on specific cooperation tasks such as jointly developing indices to list new ETFs in the South Korea and Hong Kong markets.

They will also seek entry into the Chinese market by using the ETF Connect scheme, which allows investors in the two countries to invest across borders in eligible ETFs listed on exchanges in Hong Kong and China.

China AMC is one of the asset managers that created China’s first fund in 1998. It currently manages about 665 trillion won in assets, and its ETF assets under management stand at about 150 trillion won, ranking No. 1 in China’s ETF market.

Kim Young-sung (김영성), CEO of KB Asset Management, said, "I am pleased that we will be able to provide differentiated investment solutions and offer investment opportunities to overseas investors seeking to invest in the Korean stock market."