On July 21, 2023, E Fund Management (“E Fund”), the largest fund management company in mainland China and Hong Kong, commemorates the first anniversary of the ETF Connect program by broadening its contribution. The Company’s significant presence in the asset management industry is further solidified by this expansion. Four additional ETF products are now part of their portfolio: E Fund SSE 50 ETF, E Fund STAR 50 ETF, E Fund CSI 1000 ETF, and E Fund CSI SEEE Carbon Neutral ETF.
A Year of Success for the ETF Connect Program
Launched in July 2022, this landmark program has been instrumental in facilitating two-way capital flows between mainland China and Hong Kong for eligible exchange-traded funds (ETFs). As a result, it has played a crucial role in deepening the integration of capital markets.
According to Hong Kong Stock Exchanges, as of July 17, 2023, a total of 137 ETFs can be traded through this program. The total trading volume of Northbound and Southbound ETFs amounts to approximately RMB53 billion (US$7.3 billion) and HK$382 billion (US$48.7 billion), respectively.
Expanding Portfolio Reflects Market Confidence
E Fund has been part of the ETF Connect program since its inception in July 2022. It added three more ETFs in January 2023 covering various indices like CSI Dividend, STAR and ChiNext 50, and MSCI China A50.
With the latest expansion in July 2023 that includes four new products, E Fund currently offers a total of thirteen products through the program. This growth signifies not only their commitment to providing diverse investment options but also reflects market confidence.
A Trusted Name in Asset Management
Established in 2001, E Fund is a leading comprehensive fund manager with close to RMB 3 trillion (USD414 billion) under management. Serving both individuals and institutions including central banks and sovereign wealth funds among others. With its long-term oriented approach towards investment management business since inception.
E Fund’s clients include:
- Central Banks
- Sovereign Wealth Funds
- Social Security Funds
- Pension Funds
- Insurance and Reinsurance Companies
With such a diverse client base trusting their expertise for over two decades now is indeed commendable.
Lin Weibin, Head of Index Investment Department at E Fund Management said “For overseas investors, the ETF Connect offers a convenient and efficient way to access China’s A-share market.” This statement further emphasizes on how significant this program is for global investors looking at opportunities in Chinese markets.
In conclusion, as we look back at an exciting year for the ETF Connect Program with continuous growth and expansion from players like E fund management it is clear that it continues to be an important tool for integrating capital markets between mainland China and Hong Kong. This not only provides investors with more options but also aids in strengthening financial ties between these regions.