Solactive has announced a collaboration with KB Asset Management with the launch of the RISE China AI Semiconductor Top 4 Plus ETF, which tracks the Solactive China AI Semiconductor Top 4 Plus Index.
The firm writes that the product is designed to provide exposure to Chinese companies active in the artificial intelligence (AI) semiconductor value chain, reflecting China’s strategic focus on strengthening domestic AI infrastructure and semiconductor capabilities.
“Amid increasing global investment in artificial intelligence technologies, China has expanded efforts to strengthen domestic capabilities across the AI ecosystem. Research published by the Mercator Institute for China Studies (MERICS) highlights China’s policy focus on advancing AI chips and large language model development as part of broader technology self-reliance initiatives. Industry research further indicates continued development in AI infrastructure, cloud computing, and high-performance computing applications, supporting sustained activity across semiconductor sectors, such as foundry, optical communication modules, and semiconductor equipment segments.
“Technology companies represent a significant segment of global equity markets, supported by ongoing developments in areas such as artificial intelligence, semiconductors, digital platforms, and hardware and software solutions. The United States hosts many large technology companies, while Hong Kong serves as a key listing venue for Chinese technology firms. By including securities from both markets, the index reflects companies operating across two major innovation ecosystems.”
The Solactive China AI Semiconductor Top 4 Plus Index comprises 15 companies selected through a rules-based methodology from an eligible universe of securities listed in Hong Kong or accessible via the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect programs. Companies must meet defined liquidity and size requirements and be classified into one of four Index Categories—Semiconductor Foundry, AI Chip, Optical Communication Module, and Materials & Equipment.
In addition, Solactive writes that its ARTIS framework is applied as an additional layer of analysis to further ensure strong thematic alignment of each company with its respective category. The largest company by total market capitalisation within each category is selected and assigned a fixed weight of 15 per cent, while the remaining constituents are selected by market capitalisation across categories and weighted using an equal blend of ARTIS-based relevance ranking and free-float market capitalisation weighting, subject to a 10 per cent cap. The Index is rebalanced quarterly and includes a monthly IPO review mechanism.
Timo Pfeiffer, CMO at Solactive, says: “We are pleased to expand our collaboration with KB Asset Management through this strategy focused on China’s AI semiconductor ecosystem. The index applies a systematic methodology to capture companies active across key segments of the value chain, reflecting Solactive’s commitment to delivering differentiated and innovative index solutions.”
Soojin Lee, Head of ETF Product Division at KB Asset Management, says: “Investment in domestic AI infrastructure in China is catalysing activity across semiconductors and related components. Our ETF is designed to reflect that ecosystem by spanning foundry, AI chip, optical module, and materials & equipment companies—supporting a more balanced approach than a single-focus strategy.”
