2024 Marks Breakout Year for China's ETF Market with Unprecedented Growth
GUANGZHOU, China, Jan. 10, 2025 /PRNewswire/ -- China's ETF market demonstrated exceptional performance in 2024, with notable returns and substantial growth in assets under management. According to Wind, the average return of A-share ETFs (excl. ETFs launched in 2024) reached 11.36% for the year by December 31, and the total size of A-share ETF market reached USD 508 billion, a net increase of USD 223 billion from year-begin. Notably, CSI 300 ETF (Code: 510310), ChiNext ETF (Code: 159915), and Star 50 ETF (Code: 588080) managed by E Fund Management ("E Fund"), the largest mutual fund manager in China, ranked among the top ten in asset growth, underlining the company's strong position in the industry.
A Two-Decade Journey of Growth
Since the launch of the first domestic ETF in December 2004, China's ETF market has expanded significantly. This growth is not only marked by an increase in assets but also by an acceleration in ETF issuance. In 2024, 30 fund companies launched 156 new ETFs, with E Fund leading the market by introducing 14 new products – the most among all issuers.
Over the years, the ETF market has evolved from focusing primarily on broad-based indices to offering a diverse range of products across sectors, asset classes, and themes. These innovations have broadened investment opportunities, providing both institutional and retail investors with low-cost, transparent, and flexible tools to achieve their financial goals.
The Push for Low-Cost Investing
In 2024, Chinese fund companies accelerated the trend of reducing management fees, particularly for broad-based ETFs. Leading the charge is E Fund, which has long been a pioneer in promoting cost-efficient investing. As early as 2015, E Fund set a market precedent by lowering the management fee of its flagship CSI 300 ETF (Code: 510310) from 0.5% to 0.2%, and further reduced it to 0.15% in 2019.
E Fund's leadership in low-fee strategy is further exemplified by its extensive product range, nearly 50 ETF products offering the lowest management fee of 0.15%, accounting for 60% of its ETF portfolio.
Shaping the Future of China's ETF Market
With over 80 ETFs under management and total assets exceeding USD 83.7 billion, E Fund continues to innovate by offering a broad range of low-cost, high-efficiency investment solutions.
As China's ETF market evolves and expands, E Fund remains at the forefront, driving innovation and setting new standards for accessibility and efficiency. The rapid growth in 2024 underscores not only the increasing popularity of ETFs but also their critical role in shaping the future of China's investment landscape.
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 includes subsidiaries. Data as of Sep 30, 2024. FX rate is sourced from PBoC.
SOURCE E Fund Management
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