APAC Issue Q1 2021

16 APAC / Issue Q1 2021 , Subscribe to APAC magazine Subscribe here www.apac-insider.com/subscribe Ansider ac Market leading emerging market e-commerce ETF announces major rebalancing of its index to include Chinese fintech and e-commerce platforms The market leading Emerging Market Internet & Ecommerce UCITS ETF (EMQQ) has completed the semi-annual rebalancing of its underlying Index, which has seen the number of companies invested in rise from 83 to 961. Some 20 companies have been added to the Emerging Markets Internet & Ecommerce Index, and seven have been removed from it due to Index rules on market cap, liquidity and trading volume. Two of the new companies included in the index are now top ten holdings. The EMQQ UCITS ETF delivered a return of 81.08% in 2020, and since its inception on 12th November 2014, it has delivered a return of 105.10% and EMQQ remains the best performing EM ETF in the category2. Past performance is no guarantee of future performance and when you trade ETFs your capital is at risk. Kevin Carter, CEO of EMQQ said: “This was a historic rebalance by many measures, it is the first one in years that added new top ten holdings, in this case two of them. “When EMQQ launched, it had 43 companies in the Index, and it now has 96 just six years later. This more than doubling of the Index constituents is due to the growth of the Internet and Ecommerce industry in Emerging Markets like China, South Korea, Argentina, Brazil, and South Africa. “2020 saw continued strong performance, briefly interrupted by the COVID-19, but it was then propelled by the pandemic restrictions that have been put in place. We believe the meaningful changes in consumer behaviour during the crisis will fuel growth in online shopping in emerging markets, so we continue to see unprecedented growth in this sector.” The top three firms of the 20 new companies that have been added to the Index are KE Holdings Inc, LuFax Holding LLC, and Dada Nexus Ltd. 8th largest holding: KE Holdings Inc. (NYSE ticker BEKE) In China, this company is known as Beike, and the other brand in the franchise is Lianjia. Lianjia is a leading real estate brokerage firm in China. Beike is a real estate platform that facilitates housing transactions and services in China - the Zillow of China. Beike is already the second-largest Ecommerce platform in China, behind only Ecommerce giant, Alibaba, according to information provided by the company. 10th largest holding: LuFax Holdings Ltd. (NYSE Ticker: LU) The company is one of the largest fintech firms in China, and a competitor to Alibaba’s ANT Group. Lufax is a leading technology-empowered personal financial services platform in China. Lufax has the backing of Ping An Insurance Group, one of the largest financial service conglomerate in China with business spanning across life and general insurance, banking, healthcare, and more. 21st largest holding: Dada Nexus Ltd. listed in HK and trades with the (HK: Ticker - DADA) The company provides a platform for local on-demand retail and delivery in China. The company operates JD-Daojia, a local ondemand retail platform; and Dada Now, a local on-demand delivery platform in China. KE Holdings Inc, LuFax Holding LLC, and Dada Nexus Ltd. are among the new names added to EMQQ’s underlying Index. EMQQ, which is distributed on the HANetf white-label platform, delivers exposure to an index of leading companies driving the growth of online consumption in the developing world. To be included, companies must derive more than half their profits from Ecommerce or internet activities, including search engines, online retailers, social networks, online video, online gaming, e-payment systems and online travel. Unlike most emerging market indices the companies included do not need to be listed locally. When you trade ETFs your capital is at risk. 1 Source: Bloomberg/HANetf as of 31.12.2020 2 Source: Morningstar