From BigGo Finance · BigGo Finance · · 1m 50s
China Approves 18 Active ETFs for A-Shares
China's first batch of 18 active ETFs launches Friday, potentially adding 36 billion yuan to A-shares.
In brief
China's first batch of 18 active ETFs launches Friday, potentially adding 36 billion yuan to A-shares. China's first batch of 18 active ETFs will launch on October 23, bringing at least 36 billion yuan to A-shares. Originally reported by BigGo Finance.
First Batch Approved
China's first batch of 18 actively managed ETFs was formally approved on October 19.
Launch Date Set
The products will launch subscriptions together on October 23, listing on Shanghai and Shenzhen exchanges.
Nine Products Per Exchange
Nine products are approved on each exchange: Shanghai Stock Exchange and Shenzhen Stock Exchange.
Balanced Strategies Dominate
Nine products use balanced strategies, four value strategies, three dividend strategies, and one each for quality and large-cap growth.
Fundamental vs Quantitative Strategies
Thirteen products use fundamental stock selection, five use quantitative strategies.
Estimated Market Impact
At 2 billion yuan per product, the batch could draw at least 36 billion yuan into China A-shares.
Active ETFs Defined
Active ETFs let managers adjust holdings flexibly within a defined mandate to beat a performance benchmark.
Manager Experience Varies
E Fund Management has 25 years of active equity research experience, China Asset Management manages over 600 billion yuan in ETFs.
J.P. Morgan's Role
J.P. Morgan Asset Management, a foreign shareholder, brings global active ETF experience to China.
Custodians Involved
The 18 products involve 12 institutions, including seven banks and five securities firms.
Market Impact Analysis
Active ETFs redefine active management within the ETF institutional framework, shifting competition from index resources to active management capability.
Long-Term Market Significance
The first batch could bring at least 36 billion yuan to A-shares, signaling a shift in capital allocation for China's equity market.
In short
China's first batch of 18 active ETFs will launch on October 23, bringing at least 36 billion yuan to A-shares.
