E Fund leads A-share ETF market growth

In the first half of 2024, the A-share ETF market in Guangzhou, China, achieved a significant milestone by exceeding a market size of over US$292 billion. This growth was primarily driven by the emergence of broad-based ETFs, which saw their assets double from mid-2021 to mid-2024, leading to a substantial increase in market share. During this period, 25 fund companies introduced a total of 84 stock ETFs, raising over US$5.8 billion in initial offerings.

Leading the market was E Fund, the largest fund manager in China, with ten new ETF launches and fundraising exceeding US$505k. Broad-based ETFs, especially A-share broad-based ETFs, dominated the market with over US$54.4 billion in net inflows, representing more than 90% of the total net inflows. The top 10 performing ETFs were all broad-based, tracking indexes like CSI 300, CSI 500, SSE 50, CSI 1000, ChiNext, and STAR 50.

One notable trend was the significant investor interest in high dividend yield assets, with inflows totaling around US$2.1 billion. The CSI Dividend Total Return Index and CSI Dividend Low Volatility Total Return Index delivered strong returns of 11% and 15% respectively, leading to the introduction of fifteen high dividend yield ETFs in the first half of the year, covering assets from A-share and Hong Kong stock markets.

E Fund, established in 2001, manages close to RMB 3.3 trillion (US$454 billion) and is a prominent fund manager in China. The company focuses on providing sustainable long-term investment performance to both onshore and offshore clients, emphasizing responsible investments and earning a reputation as a trusted asset manager in China.

The A-share ETF market in Guangzhou, China, has experienced remarkable growth in the first half of 2024, driven by the increasing popularity of broad-based ETFs and high dividend yield assets. With E Fund leading the market and a strong focus on responsible investments, the future looks promising for investors seeking long-term sustainable returns in the Chinese market.