U.S. institutional investors are purchasing shares in Chinese semiconductor companies.
According to China Fund News, exchange-traded funds (ETFs) managed by U.S. asset management firms are actively including Chinese semiconductor companies. CXMT (Changxin Memory Technologies), China's largest DRAM manufacturer, was officially added to the MSCI China Index on August 10. With this inclusion, the potential influx of passive funds tracking global indices has increased. Based on current market capitalization, CXMT is expected to become the second-largest stock in this index, following Tencent.
VanEck, a major U.S. asset management firm, manages the $70 billion semiconductor ETF SMH. In June, VanEck launched the SMHC, which focuses on investing in Chinese semiconductor companies. The SMHC comprises 25 Chinese semiconductor firms. John Patrick Lee, VanEck's senior product manager, stated in a recent interview that "U.S. institutional investors are showing increasing interest in Chinese semiconductors," adding that "CXMT will be included in VanEck's ETF by September."
The DISK ETF, which focuses on memory semiconductors, included CXMT on its first trading day, July 27, with a weighting of 10.56%, the highest among U.S.-listed ETFs for CXMT.
KraneShares' KSTR is another U.S.-listed ETF investing in Chinese semiconductor companies. As of the end of July, companies like Cambrios, Hygon, and AMEC ranked among the top holdings. The fund's net assets amount to approximately $375 million.
China Fund News noted that "U.S. institutional investors have a positive outlook on the Chinese semiconductor industry," and that "Chinese semiconductors are evolving from an industry reliant solely on government policy support to an investment asset attracting global institutional funds."
* This article has been translated by AI.
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