China's Tech & Core Assets Debut on Thai Market Via New ETF Links

BANGKOK, THAILAND – December 29, 2025 – The Stock Exchange of Thailand (SET) today became a new gateway to China's economic powerhouses, as leading asset manager China Asset Management Co. (ChinaAMC) launched Depository Receipts (DRs) for two of its flagship Exchange-Traded Funds (ETFs). The move, made in partnership with local brokerage InnovestX Securities, marks the first time ETFs listed on the Shanghai Stock Exchange (SSE) have been made available to an overseas market through a DR structure.

The launch grants Thai investors unprecedented, direct access to both China's core blue-chip companies and its burgeoning "hard-core technology" sector. The two products, the 'ChinaAMC CSI 300 ETF' and the 'ChinaAMC STAR 50 ETF', are now tradable on the SET in Thai baht during local market hours. This eliminates the complexities and costs associated with opening overseas trading accounts, offering a streamlined and tax-efficient route into one of the world's most dynamic, yet often difficult-to-access, equity markets.

A New Frontier for Thai Investors

For investors in Thailand, this initiative represents a significant expansion of their toolkit for international diversification. The primary appeal lies in its convenience and accessibility. By using the familiar DR structure, investors can use their existing local brokerage accounts to invest in Chinese assets, with the added benefit of a capital gains tax exemption.

The offering is strategically designed as a two-part solution for capturing Chinese growth. The 'ChinaAMC CSI 300 ETF' DR provides exposure to the 300 largest and most liquid A-share stocks, representing the core, high-quality assets of the Chinese economy. This serves as a foundational investment in the country's established industrial and financial leaders.

However, the more groundbreaking component is the 'ChinaAMC STAR 50 ETF' DR. This product offers targeted exposure to the 50 largest and most liquid companies on Shanghai's Science and Technology Innovation Board, commonly known as the STAR Market. This is China's answer to the Nasdaq, home to the nation's most promising firms in strategic emerging industries. For the first time, Thai investors have a direct channel to invest in China's "hard tech" revolution, spanning sectors like new-generation information technology, high-end manufacturing, biomedicine, and new energy. This ETF effectively fills a gap in the Southeast Asian market for dedicated exposure to China's high-growth, innovation-driven companies.

"This provides a much-needed thematic exposure that was previously hard to get," noted a Bangkok-based financial analyst. "Investors can now pair a stable, broad-market China investment with a high-growth, tactical allocation to its most innovative sectors, all within the local market framework."

Navigating the 'Hard Tech' Landscape

The timing of the STAR 50 ETF launch is particularly noteworthy. It aligns with Beijing's national strategy, which heavily prioritizes technological self-sufficiency and industrial modernization. China's upcoming 15th Five-Year Plan (2026-2030) is widely expected to double down on investments in foundational sciences and strategic industries. The semiconductor sector, a major component of the STAR 50 index, remains a focal point, with China projected to be the world's largest buyer of manufacturing equipment through 2027 as it strives to advance its domestic capabilities.

Likewise, China's biopharmaceutical market, another key industry represented in the index, is forecast to grow at a compound annual rate of 11.8% through 2030. Chinese firms are rapidly shifting from producing generics to developing innovative, breakthrough treatments, particularly in oncology and autoimmune diseases.

While the growth prospects are compelling, investors will also need to navigate the inherent risks. Geopolitical tensions, especially with the United States, continue to shape the global technology supply chain. Furthermore, the broader Chinese economy faces headwinds from a challenged property sector and subdued domestic demand, with analysts forecasting moderate GDP growth of around 4.5% for 2026. This new DR, therefore, offers a high-risk, high-reward proposition centered on China's long-term technological ambitions.

A Financial Bridge on the Belt and Road

Beyond its implications for individual portfolios, this launch is a significant milestone in the deepening financial integration between China and Thailand. It is being framed by officials as a key development under the banner of China's Belt and Road Initiative (BRI), which aims to enhance economic connectivity and capital flows between participating nations.

This financial bridge builds on a growing trend. Just last month, InnovestX partnered with Invesco to list a DR based on the ChiNext 50 Index from the Shenzhen Stock Exchange. The ChinaAMC launch, however, specifically opens the door to the Shanghai Stock Exchange's premier listings. This demonstrates a maturing regulatory relationship, with the Securities and Exchange Commission (SEC) of Thailand and the SET establishing robust frameworks that facilitate such cross-border financial products.

This initiative serves as a powerful example of the BRI's evolution from a focus on physical infrastructure to encompassing financial infrastructure. By creating seamless channels for capital, China is not only internationalizing its own markets but also embedding its assets within the financial systems of key partners in strategically important regions like Southeast Asia.

ChinaAMC's Strategic Global Push

The launch also illuminates the ambitious global strategy of ChinaAMC. As China's largest equity ETF provider for two decades, with over US$449.5 billion in assets under management, the firm is aggressively pioneering the "go global" drive for Chinese asset managers.

Its activities in Thailand this year reveal a deliberate, multi-faceted market entry strategy. In June, the firm launched Thailand's first feeder fund channels to its China A500 ETF. This was followed in July by its success in securing the first fully discretionary mandate for a Thai-domiciled fund awarded to an onshore Chinese manager. The DR launch is the third, and perhaps most direct, pillar of this expansion.

This series of moves positions ChinaAMC not just as a product provider, but as a comprehensive financial partner in the Thai market. It serves as a case study for how China's financial giants are moving beyond their domestic dominance to compete on the global stage, using a combination of traditional fund structures and innovative cross-listing mechanisms to build their international footprint. This successful foray into the Thai market is likely a blueprint for further expansion across the ASEAN region, signaling a new era of competition and collaboration in global asset management.