Rising Interest in A-shares ETFs Amid Market Sentiment Surge and Overseas Capital Influx
GUANGZHOU, China, Oct. 28, 2024 /PRNewswire/ -- Recently, the National Bureau of Statistics of China announced that investment in high-tech industries continued to scale up in the first three quarters, of which the investment in high-tech manufacturing and high-tech services grew by 9.4% and 11.4% respectively. Since September 24th, a series of favorable policies, such as interest rate cuts, mortgage rate reductions, and new monetary tools have boosted China's stock market sentiment. Interest in high-quality assets continues to rise, with broad-based ETFs gaining traction as an attractive investment option. It's also observed that foreign capital is accelerating its inflow into Chinese assets.
EPFR data shows that US$57.6 billion flowed into A-shares between September 23rd and October 20th, making up more than 90% of total flows into emerging markets. As of October 24th, Bloomberg data shows that China-focused ETFs occupied five of the top 10 global ETF inflows, totaling US$19.2 billion for the past month. Global investors particularly favored technology industries, which accounted for a significant portion of these inflows.
Notably, E Fund ChiNext ETF (Code: 159915) and E Fund STAR 50 ETF (Code: 588080) provided by E Fund Management ("E Fund"), the largest mutual fund manager in China, are attracting attention. These ETFs focus on high-growth technology and innovation-driven industries, aligning with the increasing investor interest in China's tech sectors. To be more specific, while the ChiNext index prioritizes sectors such as new energy and healthcare, the STAR 50 Index leans more towards semiconductor sector.
In addition, E Fund continues to innovate, expanding its ETF product line to meet growing market demand for diverse, sector-specific investment opportunities, including E Fund AI ETF (Code: 159819) and E Fund CSI Cloud Computing & Big Data ETF (Code:516510), which are available via ETF Connect to empower offshore investors.
About E Fund
Established in 2001, E Fund Management Co., Ltd. ("E Fund") is a leading comprehensive mutual fund manager in China with over RMB 3.5 trillion (USD 505 billion) under management.* It offers investment solutions to onshore and offshore clients, helping clients achieve long-term sustainable investment performances. E Fund's clients include both individuals and institutions, ranging from central banks, sovereign wealth funds, social security funds, pension funds, insurance and reinsurance companies, to corporates and banks. Long-term oriented, it has been focusing on the investment management business since inception and believes in the power of in-depth research and time in investing. It is a pioneer and leading practitioner in responsible investments in China and is widely recognized as one of the most trusted and outstanding Chinese asset managers.
Source: E Fund. AuM is preliminary and includes subsidiaries. Data as of Sep 30, 2024. FX rate is sourced from PBoC.
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