The total size of China's Exchange Traded Fund (ETF) market surpassed 3 trillion yuan (around 427.55 billion U.S. dollars) for the first time on Monday following the recent rally in the country's stock markets.
Buoyed by a slew of policies introduced by the government to prop up the economy, Chinese stock markets surged ahead of the week-long National Day holiday starting from Tuesday.
Data showed that over the past six trading days, the average return rate of equity funds including stock funds and equity-oriented hybrid funds, exceeded 12 percent, with over 98 percent of products in the market achieving positive returns. "The equity market saw a long-awaited surge following the introduction of the policies. Currently, the performance of many equity products of public funds has turned positive for the year. Data from our company's databases shows that some equity products have experienced an increase in net subscriptions," said Gao Mao, a fund manager.
Monday is the last trading day before the National Day holiday with Chinese stock markets closing from Tuesday through October 7.
At Monday's close, funds in ETFs reached 3.17 trillion yuan (around 451.77 billion U.S. dollars), an increase of 455.9 billion yuan (around 64.97 billion U.S. dollars) since early September.
On Monday, the benchmark Shanghai Composite Index broke through 3,300 points, with the trading volume of the leading CSI 300 ETF exceeding 25 billion yuan (around 3.56 billion U.S. dollars), hitting a new high since its inception.
"The stock market, including A-shares and Hong Kong stocks, has seen continuous inflows of funds, substantial overall increases, and surges in trading volume. Some equity ETFs directly benefiting from favorable policies are performing very strongly," said Kuang Yueqing, an analyst.
Total size of China's ETF market exceeds 3 tln for first time
