China's ETF Market Triumphs in 2024 with Record Growth

China's ETF Market Triumphs in 2024 with Record Growth

In 2024, China's ETF market showcased remarkable performance, characterized by impressive returns and an extraordinary rise in assets under management. By the year-end, the average return for A-share ETFs reached an impressive 11.36%, contributing to a staggering total market size that exceeded USD 5.1 trillion. This marked a net increase of USD 2.3 trillion compared to the beginning of the year. Noteworthy contributions came from the CSI 300 ETF (Code: 510310), ChiNext ETF (Code: 159915), and the Star 50 ETF (Code: 588080), all managed by E Fund Management, which is recognized as the largest mutual fund manager in the country.

A Two-Decade Journey of Growth

The evolution of China's ETF market since the introduction of its first domestic ETF in December 2004 has been astounding. The market has not only expanded in terms of assets but also experienced substantial growth in ETF issuance. In 2024, a total of 156 new ETFs were launched by 30 different fund companies, with E Fund leading this charge by launching 14 new products, taking the lead as the most prolific issuer among competitors.

Over the years, the market has transitioned from a focus on broad-based indices to incorporating a diverse array of products across various sectors, asset classes, and themes. This diversification enriches investment options, giving both institutional and retail investors access to low-cost, transparent, and adaptable tools necessary for achieving their financial ambitions.

The Push for Low-Cost Investing

In 2024, the trend for lowering management fees gained momentum among Chinese fund companies, especially for broad-based ETFs. E Fund continued to set an example in cost-efficient investing, having made significant strides since 2015 when it first reduced the management fee of its flagship CSI 300 ETF from 0.5% down to 0.2%, ultimately lowering it further to 0.15% in 2019. This leadership in low-fee strategies is reflected in E Fund's extensive range of products, which includes nearly 50 ETFs that offer the lowest management fee of 0.15%, comprising 60% of its entire ETF portfolio.

Shaping the Future of China's ETF Market

Currently managing over 80 ETFs and boasting total assets exceeding USD 83.7 billion, E Fund is at the forefront of innovation, constantly introducing a variety of low-cost and highly efficient investment solutions. As China's ETF market continues to mature and expand, E Fund plays a pivotal role in driving innovation, setting benchmarks for accessibility, and efficiency. The phenomenal growth observed in 2024 not only highlights the rising interest in ETFs but also emphasizes their importance in shaping the investment landscape of the country.

About E Fund

Founded in 2001, E Fund Management Co., Ltd. is a premier and comprehensive mutual fund manager within the country, overseeing over RMB 3.5 trillion (approximately USD 505 billion) in assets under management. The company delivers investment solutions tailored for both onshore and offshore clients, aiding them in achieving sustainable long-term investment performance. E Fund serves a diverse clientele that includes individuals and institutions, such as central banks, sovereign wealth funds, pension funds, insurance companies, and banks. With a long-term focus, E Fund prioritizes in-depth research in its investment strategies and is recognized as an innovator in responsible investing within China, gaining a reputation as one of the most trusted asset managers in the nation.

Frequently Asked Questions

What were the key highlights of China's ETF market in 2024?

In 2024, China's ETF market saw average returns of 11.36%, with a remarkable asset increase to USD 5.1 trillion, indicating strong market performance.

How has the ETF market in China evolved since its inception?

Since launching the first domestic ETF in 2004, the Chinese ETF market has expanded significantly, both in terms of assets and the variety of products available.

What role did E Fund play in the 2024 ETF market?

E Fund emerged as a leader by launching 14 new ETFs and maintaining a focus on low-cost investment strategies, thereby enhancing its industry presence.

What are the management fee trends in China's ETF market?

The trend towards reducing management fees gained significant momentum in 2024, led by E Fund with competitive fees as low as 0.15% for a large portion of its ETFs.

How does E Fund approach investment management?

E Fund emphasizes long-term performance through in-depth research and a commitment to responsible investing, earning it a prominent reputation in the asset management industry.

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