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Chinese Exchange-traded funds saw a “staggering” Inflows have consistently reached new heights in the past five years. Morningstar.

Annual inflows to China ETFs surged almost fivefold over the past three years,” Morningstar’s Research Manager Wanda Wang “Said in a June report. 

According The data that is provided by the American Total yearly inflows of financial services firms Chinese The ETF market grew from 127.2 billion Chinese In 2022, the number of yuan will increase from 1749 billion ($17.49 Billion) in 2021 to 387.2 milliards yuan. In This figure will reach 604.3 billion Yuan in 2023.

By At the end last year, ETFs managed a total of AUM of $ 1.1 trillion. China At the end of 2020 it will have reached 1.82 trillion Yuan.

“Between 2018 and 2023, the annual assets under management growth rate of ETFs in China averaged a staggering 40%, and the total AUM reached record highs every year,” You can also find out more about the following: Morningstar Report said

The Wider China The A-shares Market has been established. “tepid” Financial services firm says that bright spots will only appear in niche industries until 2022.

“The growth of the Chinese ETF market over the past few years is explosive,” Wang Tell CNBC.

Against In this context, it was difficult for actively-managed funds to outperform. China’s ETF market, doubling total AUM in three years to 2 trillion Yuan.

“The influx of investments by institutional investors have been into broad-based index-tracking ETFs, which is the most important part of the rapid inflows of ETFs in China,” Wang added.

‘Immense Equity ETFs gaining traction 

Equity Particular products gained “immense traction” The 870 ETFs that were traded in the past three years accounted for 96%. China By the end 2023. 

Inflows The annual AUM is China’s The equity ETFs are also at record highs. Wang wrote. Annual Inflows alone in 2023 reached 575.6 billion Yuan, surpassing the total inflows from 2019 to 2022.

Additionally. On the back a booming sector of semiconductors, large sums of assets were directed towards Morningstar’s The so-called tech and communications sector category. Wang added. 

ConverselyThe report revealed that there was a net outflow in the equity financial and real-estate category.

Fixed The growth in AUM and product launches of income ETFs (which make up about 4% of all ETFs) has been slower. Commodities The ETFs, mainly gold ETFs accounted for less than 2%.

Morningstar ETFs are gaining in popularity. China The market is concentrated with the largest providers, such as China Asset ManagementE Fund Management You can also find out more about the following: Huatai-PineBridge is one of the largest ETF providers in terms of AUM.

CNBC’s Evelyn Cheng Contributed to this report

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