Bringing you live news and features since 2006 

Great Wall of China

Chinese economy faces headwinds, but medium/long term prospects still attractive

RELATED TOPICS​

Access to the Chinese equity market can be complex and limited, but exchange-traded funds have made it easier to access multiple corners of the market, with 132 China-focused products listed in 22 countries and USD38.8bn in AUM.



These ETFs offer access to both the onshore (A/B-share) and the offshore (e.g. H/N-share/Red/P-chips) market, as well as various sectors, styles, and strategies providing intra-day liquidity to investors around the globe.

The Chinese economy is currently experiencing an economic growth slowdown, and market participants around the world wonder whether Chinese authorities will be able to engineer a soft landing for the growth engine of the emerging world.

Deutsche Bank’s chief economist for Greater China, Jun Ma, expects a very weak recovery for the Chinese economy. And on the equity market side, while Ma does not expect a significant rebound in the near term, he remains positive on its medium-term outlook based on the market’s attractive valuations. With respect to sectors, he suggests insurance, luxury auto, power, health care and gas distribution.

Chinese regulators have made significant efforts to keep opening the local market to foreign investors. Most recently they increased the investment quota for QFIIs by USD50bn to USD80bn, and for RQFIIs by RMB50bn to RMB70bn. In addition, they reduced QFII eligibility requirements, streamlined review and approval procedures, and relaxed restrictions on the establishment of securities accounts by QFIIs, their investment scope and shareholding ratio.

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by