Connect with us

CryptoCurrency

China’s Passive Equity Assets Exceed Active Ones for First Time

Published

on

China’s Passive Equity Assets Exceed Active Ones for First Time


(Bloomberg) — Chinese stocks managed by passive funds have overtaken the size of those under actively-managed peers, marking a major milestone as the country rapidly catches up with the global passive boom.

Most Read from Bloomberg

The total value of onshore stocks held by passive funds including exchange-traded products swelled to 3.16 trillion yuan ($443 billion) at the end of the third quarter, according to figures compiled by Minsheng Securities Co. The tally has edged past that of active mutual funds, whose mainland equities under management ticked up to 2.84 trillion yuan, for the first time ever.

Advertisement

The reversal is a culmination of a years-long rise in passive investment, as investors frustrated with stock losses shunned professional fund managers. While a latecomer in introducing ETFs, China has witnessed a surge in demand for passive products lately, especially for equity-related ones. The country still trails the US, where passive equity strategies command 58% of market share.

While most of this year’s inflows were driven by state funds using ETFs as a market intervention tool, the influx in September was likely triggered by retail investors rushing to ride a stimulus-driven equity rebound. The CSI 300 Index surged nearly 35% from a September low through Oct. 8, before losing steam as traders await details on fiscal stimulus.

There’s still a lack of a diverse ETF products listed onshore compared to developed markets, where those tracking derivatives and crypto assets have boomed.

Meanwhile, China’s active equity products have faced redemption pressure as investors took advantage of narrowing losses to trim holdings, according to Minsheng analysts including Mou Yiling. Total active fund redemptions in the third quarter reached 139 billion units, compared to 89 billion units in the previous period, according to a separate estimate by Huachuang Securities.

Advertisement

Active funds have seen their assets steadily shrink since a late-2021 peak. In contrast, inflows into ETFs have steadily risen since then, with the pace picking up this year, thanks partly to the so-called national team snapping up shares to buffer downside pressure. State-backed investors were particularly active during the February rout and a key political meeting in July.

(Updates with CSI 300 moves in fourth paragraph.)



Source link

Continue Reading
Advertisement
Click to comment

You must be logged in to post a comment Login

Leave a Reply

CryptoCurrency

Saylor’s Bitcoin custody debacle highlights growing divide in crypto community

Published

on

Saylor’s Bitcoin custody debacle highlights growing divide in crypto community


As institutional interest in Bitcoin soars, the crypto community grapples with fundamental questions about custody and control.



Source link

Advertisement
Continue Reading

CryptoCurrency

Binance founder CZ sees positive shift in crypto regulation worldwide 

Published

on

Binance founder CZ sees positive shift in crypto regulation worldwide 


Developing crypto regulations, along with a political shift toward cryptocurrencies, is a “very positive direction” for the industry, according to Changpeng Zhao.



Source link

Advertisement
Continue Reading

CryptoCurrency

Harris win unlikely to rock Bitcoin price, but crypto fears persist, say observers

Published

on

Harris win unlikely to rock Bitcoin price, but crypto fears persist, say observers


With the US presidential elections nearing and no clear frontrunner, uncertainty looms over what effect the victor will have on the crypto sector.



Source link

Advertisement
Continue Reading

CryptoCurrency

Missing Bitcoin and lost execs: Halloween’s creepiest crypto mysteries

Published

on

Missing Bitcoin and lost execs: Halloween’s creepiest crypto mysteries


It’s Bitcoin White Paper Day, but it’s also Halloween. Here are Cointelegraph’s six crypto mysteries to share around the campfire.



Source link

Advertisement
Continue Reading

CryptoCurrency

Bitget wallet on Telegram hits 6 million users 3 days after launch

Published

on

Bitget wallet on Telegram hits 6 million users 3 days after launch


Bitget Wallet’s Telegram Mini App, Bitget Wallet Lite mini, has attracted more than six million users in just three days after its soft launch.



Source link

Advertisement
Continue Reading

CryptoCurrency

Bitcoin at 16: From experiment to trillion-dollar asset

Published

on

Bitcoin at 16: From experiment to trillion-dollar asset


In just 16 years, Bitcoin has grown to become the world’s 10th largest asset and the best currency for “financial freedom,” according to Tether CEO, Paolo Ardoino.



Source link

Advertisement
Continue Reading

Trending

Copyright © 2024 WordupNews.com