Possibilities and Opportunities Seminar held in Hong Kong about ETF Connect in China Allocation

易方达香港
2023-11-01

HONG KONG, Nov. 1, 2023 -- Since the establishment of ETF Connect scheme in July 2022, the connection of Mainland of China and Hong Kong capital markets was further strengthened. As of October 25th this year, the number of ETFs offered through the scheme grew over 130 and the total northbound cumulative trading volume reached over US$12 billion, demonstrating the favor of ETFs as allocation tools by global investor.

Last week on October 25th, during a seminar held in Hong Kong by E Fund Management ("E Fund" or "the Company"), the largest fund manager in China and its Hong Kong subsidiary, together with more than 30 industry experts shared about their view on investment opportunities in China's equity market and the ETF Connect scheme. 

In this seminar, a representative from Shenzhen Stock Exchange mentioned that ETF market in China has been developing in recent years, empowered by more product offerings and increasing awareness of local investors about investing in ETFs. At the end of 2022, the total size of ETF market was closed to US$180 billion with over 700 non-money market ETFs – a 22% annual increase in size.

Jeff Li, Chief Investment Officer of International Equity at E Fund, discussed about investing in China from a global perspective. According to Jeff, China has a large potential domestic market demand. He believes that China's economy is vibrant, resilient, and brimming with potential and Chinese stocks are at very attractive valuation.

Noting the rise of ETFs, Xi Cheng, Portfolio Manager at E Fund's Index Investment Department, outlined his vision that "China's innovation-driven sectors are poised for long-term development driven by the growth of emerging industries and the increasing domestic needs. Investors can capture these opportunities by allocating via ETFs". Adding to that, Jerry Peng, Head of Chinese Business Development at Jane Street highlighted that ETF Connect scheme is a key consideration for market makers, facilitating foreign capital to the A-share market. "Utilizing the Connect Scheme to invest in China is crucial in this context," he stated. 

The event was concluded with more exchanges of ideas on the prospects of ETF Connect which will continue to provide cost-efficient and transparent access to China's fast-developing capital markets for foreign investors who are looking to add diversification to portfolios and share in China's long-term economic growth.

About E Fund Management

Established in 2001, E Fund Management Co., Ltd. ("E Fund") is a leading comprehensive fund manager in China with over RMB 3 trillion (USD 420 billion) under management. It offers investment solutions to onshore and offshore clients, helping clients achieve long-term sustainable investment performances. E Fund's clients include both individuals and institutions, ranging from central banks, sovereign wealth funds, social security funds, pension funds, insurance, and reinsurance companies, to corporates and banks. Long-term oriented, it has been focusing on the investment management business since inception and believes in the power of in-depth research and time in investing. It is a pioneer and leading practitioner in responsible investments in China and is widely recognized as one of the most trusted and outstanding Chinese asset managers.

As of October 25th

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