China ETFs See Record Inflows

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According to mutual fund firm China Asset Management Co (ChinaAMC), China’s exchange-traded funds (ETFs) have experienced an annual net inflow of over 400 billion yuan ($55.97 billion) this year, setting a record for annual net inflows. Investors looking for greater value in exchange-traded funds (ETFs) have resulted in net withdrawals of approximately 360 billion yuan from active equities and allocation funds. As active fund managers find it difficult to turn a profit, passive investment has become more popular. This year, an index that tracks China’s active equities funds fell by about 12%. 

Between January and September, China’s stock exchange-traded funds had a 33% increase in total assets under management, reaching 1.48 trillion yuan, or around $209 billion. ETFs have become more and more popular as Beijing begins purchasing blue-chip ETFs from sovereign wealth funds like China’s Central Huijin Investment in an effort to stabilise the stock market.

DISCLOSURE: All our E.F team members come from an investment background. Apart from writing articles about companies, investments and financial instruments, we also invest in most of them. Please read our terms of use for more details.

E.F Team

Our team at Eastern Finance is made up of young and knowledgeable professionals who are here to provide you with business news from an eastern perspective.

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