In 2023, Chinese exchange-traded funds (ETFs) attracted record investments of $83.3 billion, which corresponds to 604.3 billion yuan. This figure is almost twice the level of 2022 and more than five times higher than the results of 2021. Compared to previous years, the dynamics of investments in ETFs is even more significant: in 2019, the inflow amounted to only 5.1 billion yuan, and in 2020, during the pandemic, capital outflows of 41.8 billion yuan were recorded. The study shows that from 2018 to 2023, the average annual growth of ETF assets in China was an impressive 40%. Morningstar experts attribute this rapid growth to the low performance of China's main securities market and the actions of regulators who have reduced fees for investors in ETFs. As of the end of 2023, the total number of ETFs in China has increased to 870. Equity funds accounted for 96% of this number (834), while ETFs working with bonds, commodities and convertible securities numbered only 17, 17 and 2, respectively.
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