The rise of passive investment, supported by favorable policies and a robust regulatory environment, has significantly boosted capital inflows into the exchange-traded fund (ETF) market. In the first half of 2024, the Shanghai Stock Exchange (SSE) saw over RMB 450 billion in ETF inflows, 80% of 2023's total, pushing cumulative net inflows since 2021 past RMB 1.2 trillion.

Stock ETFs dominated, attracting RMB 388.6 billion, or 84.2% of the total inflow. Bond ETFs followed with RMB 23.4 billion, while strategy ETFs saw a sharp increase. Notably, Central Huijin Investment Ltd. and Guoxin Investment Co., Ltd. expanded their ETF holdings, driving further capital inflow alongside self-purchases by fund companies and listed firms.

The SSE ETF market experienced strong growth, with a total turnover of RMB 11.8 trillion, ranking first in Asia and third globally. The market's scale surpassed RMB 2 trillion, second in Asia and eighth worldwide. Trading activity reached new heights, with an average daily turnover of RMB 100.8 billion, up 12.6% year-on-year.

ETF product offerings have diversified, leading to a more balanced market structure. By June 2024, domestic ETFs covered various asset classes, with stock ETFs making up 73% of the market, followed by cross-border, currency, bond, and commodity ETFs.

Globally, the ETF market achieved record net inflows for the fifth consecutive year, reaching USD 13.17 trillion in assets by June 2024. The U.S. market led with USD 440.41 billion in net inflows, while Europe and Asia-Pacific also saw significant growth.

As domestic institutional investors grow and market efficiency improves, index funds, especially ETFs, are set to become the preferred choice for asset allocation. The SSE is committed to diversifying ETF offerings, enhancing market mechanisms, and fostering a robust ETF ecosystem to support China's economic development.

The rise of passive investment, supported by favorable policies and a robust regulatory environment, has significantly boosted capital inflows into the exchange-traded fund (ETF) market. In the first half of 2024, the Shanghai Stock Exchange (SSE) saw over RMB 450 billion in ETF inflows, 80% of 2023’s total, pushing cumulative net inflows since 2021 past RMB 1.2 trillion.

Stock ETFs dominated, attracting RMB 388.6 billion, or 84.2% of the total inflow. Bond ETFs followed with RMB 23.4 billion, while strategy ETFs saw a sharp increase. Notably, Central Huijin Investment Ltd. and Guoxin Investment Co., Ltd. expanded their ETF holdings, driving further capital inflow alongside self-purchases by fund companies and listed firms.

The SSE ETF market experienced strong growth, with a total turnover of RMB 11.8 trillion, ranking first in Asia and third globally. The market's scale surpassed RMB 2 trillion, second in Asia and eighth worldwide. Trading activity reached new heights, with an average daily turnover of RMB 100.8 billion, up 12.6% year-on-year.

ETF product offerings have diversified, leading to a more balanced market structure. By June 2024, domestic ETFs covered various asset classes, with stock ETFs making up 73% of the market, followed by cross-border, currency, bond, and commodity ETFs.

Globally, the ETF market achieved record net inflows for the fifth consecutive year, reaching USD 13.17 trillion in assets by June 2024. The U.S. market led with USD 440.41 billion in net inflows, while Europe and Asia-Pacific also saw significant growth.

As domestic institutional investors grow and market efficiency improves, index funds, especially ETFs, are set to become the preferred choice for asset allocation. The SSE is committed to diversifying ETF offerings, enhancing market mechanisms, and fostering a robust ETF ecosystem to support China's economic development.