The Development of the ETF Market in China

Abstract

With the rapid growth of the Chinese stock market in recent years, index tracking mutual funds and ETFs have also exploded onto the scene. Today, China ranks second behind Japan in its index fund assets. This article introduces the two key index calculators in the Chinese A-shares market and provides key statistics on its index fund and ETF markets. The authors discuss some of the recent asset-gathering successes and product-development trends and explore some of the existing constraints in the Chinese index fund market.