ETFs experience boom as state funds pile in

Refined products: People walk past the Exchange Square in Hong Kong, with screens showing the stock index and stock prices. JPMorgan’s China ETF business has more than tripled so far this year, thanks in part to high-dividend stocks in Hong Kong. — Reuters

SHANGHAI: China’s exchange-traded funds (ETFs) are booming as state funds pile in and managers are rushing out new products to meet demand from investors disillusioned by active money managers and a flagging stock market.

The country’s ETF assets have ballooned nearly 40% so far this year to 2.8 trillion yuan (US$394bil) and are on track for a record annual inflow, exchange data showed, despite the stock falling 4%.