Firm Foundations of Growth: Productivity and Technology in East Asia and Pacific
June 2, 2025--The most productive (so-called frontier) firms in East Asia and Pacific are falling further behind global leaders, especially in the digital-intensive sectors that drive innovation. Synchronized reforms to improve competition, digital infrastructure, and skills can reignite productivity growth.
The productivity puzzle
In East Asia and Pacific (EAP), productivity growth has slowed over the past two decades. Why has this slowdown come at a time of rapid technological progress?
First, in EAP, aggregate productivity growth has been mostly due to increases within firms, with little contribution from reallocation of market share between firms or firm entry and exit.
Second, productivity growth has been slower within most-productive EAP firms-"the national frontier"-than less productive firms. This slows aggregate productivity, because the national frontier firms account for a large share of output and jobs. These findings are not unique to EAP, but are confirmed also in other developing countries.
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Source: worldbank.org
ETFs Unlock Growth in China's Booming Tech Landscape
May 29, 2025--In 2025, A-share tech-focused ETFs have continued to attract significant investor interests-the top five industry/thematic ETFs by net inflows, as of May 21, were all technology-related, collectively drawing in US$ 7.87 billion, including the E Fund CSI Artificial Intelligence ETF (159819), which saw a net inflow of US$ 1.17 billion.
Meanwhile, leading asset managers in China are observed to actively positioning themselves in tech-focused ETFs, such as AI ETFs, robotics ETFs, and aviation ETFs. Notably, E Fund Management ("E Fund"), the largest mutual fund manager in China, has highlighted six cutting-edge sectors, spanning artificial intelligence, robotics & smart devices, computing technology, healthcare technology, energy technology and space technology and has established a complete range of ETF products to capture growth opportunities.
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Source: E Fund Management
Hanwha Asset Management Launches Hanwha PLUS AI Agents ETF Tracking the Solactive US AI Agents Index
May 20, 2025--Solactive is pleased to extend its collaboration with Hanwha Asset Management with the launch of the Hanwha PLUS AI Agents ETF, which tracks the Solactive US AI Agents Index. This ETF offers investors targeted exposure to U.S.-listed companies at the forefront of artificial intelligence innovation, particularly those driving advances in generative, agentic, and autonomous AI systems.
The artificial intelligence sector is experiencing explosive growth, catalyzed by developments in generative AI and intelligent software agents. In 2024, AI integration in global enterprises reached 72%, with 65% of enterprises already deploying generative AI solutions, a dramatic acceleration from the previous year[1]. In 2025, the global artificial intelligence market is projected to reach $243.72 billion, with the U.S. accounting for the largest market share at $66.21 billion. By 2030, this figure is expected to more than triple to $826.73 billion, underscoring the significant long-term potential.[2]
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Source: Solactive AG