Bringing you live news and features since 2006 

New BBH survey reveals pent-up demand for ETFs among Chinese investors


The potential inclusion of ETFs in China-Hong Kong Stock Connect program would likely unleash pent-up demand for Hong Kong ETFs from mainland Chinese investors, according to a new survey by ETF custodian, administrator, and trustee Brown Brothers Harriman (BBH).

Nearly 90 per cent of mainland investors surveyed said they would likely invest in ETFs through the Stock Connect program, which allows international investors to trade securities listed on the Shanghai and Shenzhen exchanges, and mainland investors to trade securities listed on the Hong Kong exchange. 

While ETFs are not currently part of Stock Connect, regulators are planning their future inclusion as early as late 2018.

BBH says the results also point to strong ETF investment growth across Greater China in 2018 and an uptick in investor demand for products with diversified exposure. While 43 per cent of Mainland investors plan to increase their ETF holdings, 65 per cent of investors surveyed in Hong Kong and Taiwan are looking to increase their ETF exposure.

Chris Pigott, BBH’s Head of Hong Kong ETF Servicing, says: “Regulatory reform has helped spur the growth of ETFs in the US and Europe. The inclusion of ETFs in Stock Connect will open another cross-border channel for Mainland investors to deploy their capital and further diversify their investment outside the Mainland. This development presents a significant opportunity for regional and global asset managers.”

BBH surveyed 100 financial intermediaries and institutional investors from the Mainland, Hong Kong and Taiwan C all of whom were invested in ETFs. The survey provides insights into the current state and future of ETFs in Greater Chinas rapidly expanding and evolving markets.

Latest News

BlackRock’s global ETP flows report for June finds a steady rise with USD128.1 billion added to global ETPs in June,..
Morningstar’s global ETF flows report for the first half of 2024 shows that actively managed ETFs have captured 25 per..
The surge in bitcoin ETF launches and funds flowing into the sector is transforming institutional investment in digital assets but..
LSEG Lipper’s latest research finds that the majority of actively managed funds and ETFs globally were not able to beat..

Related Articles

Chris Lo, Columbia Threadneedle
In a recent insight on India by Columbia Threadneedle Investments, the firm reports that the country’s economic reforms, which aim...
With an election on the horizon in the United States a group of ETFs is poised to capture investments on...
Robot worker
Qraft Technologies, based in South Korea, specialises in the use of AI in security selection and portfolio construction....
Andrea Busi, Directa SIM
Romain Thomas talks to Andrea Busi (pictured), CEO of Directa SIM, who explains why the online trading platform has just...
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