China is likely to issue a record number of exchange-traded funds (ETFs) this year, having already crossed the halfway mark of the all-time high of 277 ETFs launched four years ago, spurred by favourable regulations and growing investor demand.
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Fund managers in mainland China launched 166 ETFs tracking stock indexes, bonds and overseas markets up to the end of June, according to ETFGI, a research and consulting firm.
“If the pace of launches continues, we will see the previous record of 277 ETFs in 2021 being surpassed,” said Deborah Fuhr, founder and managing partner at ETFGI.
The surge in ETF listings in China reflects a broader global trend, with more than 1,300 ETFs launched worldwide in the first half of the year, putting the industry on track for a potential record.
ETFs are investment funds traded on stock exchanges, typically holding a basket of assets such as stocks, bonds, commodities, or a mix. Most of the ETFs launched on the mainland this year track equities, with the rest tracking bonds and foreign stocks, according to Z-Ben Advisors, a Shanghai-based fund tracker.
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In China, favourable regulations – such as streamlined approvals and reduced fees – along with growing investor demand for returns, were all contributing to the momentum, according to analysts.