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E Fund Management Sees Growing Investor Interest in ChiNext ETF
E Fund Management (“E Fund” or the “Company”), a leading asset management firm with offices in mainland China and Hong Kong, has seen significant performances in its exchange-traded fund (ETF) products with its E Fund ChiNext ETF (159915.SZ) particularly drawing attention from investors for its large volume of transactions.
The ChiNext Board, a Nasdaq-style board on the Shenzhen Stock Exchange, is gaining popularity with 15 ETFs tracking the performance of the ChiNext Index, while the E Fund ChiNext ETF managed to top the list in terms of daily turnover volume and fund size.
It seems that investors are becoming more active in trading ChiNext-linked ETFs. As of May 22, the net inflow for the 15 ETFs tracking the ChiNext Index has amounted to over 18.3 billion yuan (US$2.59 billion), already surpassing the full-year net inflow of 17.5 billion yuan (US$2.49 billion) in 2022, according to Wind. Specifically, the E Fund ChiNext ETF came in first with its average daily turnover value of 1.18 billion yuan (US$167 million) over the past year.
The ChiNext Index tracks the 100 stocks with the largest market capitalization and liquidity on Shenzhen’s ChiNext Board, and reflects the overall performance of the board, making it one of the most essential indexes for tracking the Chinese A-share markets. The growing investment activities underscore the sentiment for the country’s emerging industries, as the ChiNext Index indicates the development direction for the country’s burgeoning sectors. In recent years, companies in the fields, such as new energy, electric vehicle, information technology, biotech, and new materials, have seen rapid growth.
The E Fund ChiNext ETF released the 2022 report on March 30. As of the end of 2022, the ChiNext Index has put much weight for stocks related to the new energy, financial services, medical instruments manufacturing and industrial automation sectors among its top 10 components.
Looking ahead, Xi Cheng, who manages the E Fund ChiNext ETF, stated that China’s domestic economy is expected to enter the stage of recovery. In the long term, the technology and advanced manufacturing industries may continue to gain momentum against the backdrop that the country has been making efforts to promote systemic reform in line with China’s vision for self-innovation.
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