Global X ETFs, Citi and OSL Launch Hong Kong's First Tokenized Covered Call ETF

HONG KONG - Mirae Asset Global Investments (Hong Kong) Limited, together with Citi Investor Services (Citi) and OSL Group (HKEX:863) ("OSL"), today announced the launch of a tokenized unit class for the Global X HSCEI Covered Call Active ETF (3416) (the "Fund"), effective August 27, 2026, and open for subscription immediately.

This marks the first covered call ETF in Hong Kong to introduce a tokenized unit class, and represents a pioneering collaboration between Global X ETFs, Citi and OSL.

The tokenized unit class will be recorded and represented on a blockchain network through digital tokens (the "Tokens"), with each Token corresponding to one tokenized unit of the Fund. The new structure provides investors with the option to hold Fund units in tokenized form while enhancing operational efficiency and transparency.

As part of this collaboration, Citi continues to support Global X ETFs with trustee, custody, fund administration and ETF services with the addition of transfer agency on the tokenized unit class of the covered call ETF.

OSL supports the launch of the Fund's tokenized unit class via its Securities and Futures Commission (SFC)-licensed virtual asset trading platform in Hong Kong, enabling both institutional and retail investors to participate through a regulated platform. (For details regarding the sales arrangements of the relevant product, investors should contact their distributor.) To power this, OSL leverages its institutional-grade platform, OSL Tokenworks, to manage the entire asset tokenization process, delivering faster settlement, improved transparency, and enhanced operational efficiency.

From Product Innovation to Infrastructure Innovation

The Global X HSCEI Covered Call Active ETF (3416) was listed on February 2024 and was the world's first covered call ETF referencing the Hang Seng China Enterprises Index. This was among the first batch of covered call ETFs launched in Hong Kong. Since its debut, the Fund has gained strong traction among local investors due to its income-generating characteristics.¹

The introduction of a tokenized unit class represents the evolution of the Fund from strategy innovation to infrastructure innovation, further demonstrating Global X's commitment to innovation and its support for the Hong Kong SAR Government's policy direction of fostering the sustainable development of digital assets and financial technology.

The Fund's tokenized unit class is available in both Hong Kong dollars and U.S. dollars and is designed as an income-focused ETF aiming to make monthly distributions. (Distributions are not guaranteed and may be paid out of capital.)

Dennis Fok, Co-Chief Executive Officer and Chief Investment Officer, ETF, Mirae Asset Global Investments (Hong Kong) Limited, said: "Global X's Covered Call strategy provides investors with a relatively stable source of income, while tokenization transforms the way investors hold and transact fund units. We are delighted to partner with Citi and OSL to bring Hong Kong's first covered call ETF into the blockchain era and deliver a more efficient investment experience for investors."

David Brown, Japan, Asia North and Australia Financial Institutions Sales Co-Head, Services at Citi, said: "Citi is proud to collaborate with Global X ETFs and OSL on this milestone launch in Hong Kong, reflecting our shared commitment towards innovation and the development of local capital markets. The launch extends our long-standing partnership with Global X ETFs, with Citi now serving as transfer agent. This reflects the continued digitization of Citi's global transfer agency platform, enabling fund tokenization as part of a broader suite of digital asset solutions across Citi's Services business."

Terrence Pu, Senior Vice President of OSL Exchanges, OSL Group, said: "What tokenization changes is how efficiently fund income and units can be held, transferred and settled. Through our regulated platform, we are able to bring both institutional and retail investors into this structure with the same standards they would expect from traditional funds, while giving them the operational benefits of holding units on-chain. This collaboration also marks a step in diversifying OSL's product offering, providing clients more flexibility in capital allocation and investment management."

For details of the Fund and its risk factors, please refer to the Fund's Prospectus and Product Key Facts Statement available at:

https://www.globalxetfs.com.hk/

(This website has not been reviewed by the Securities and Futures Commission.)

1. Mirae Asset; Hong Kong Exchanges and Clearing Limited (HKEX), February 28, 2024.