Increased inflow observed into China's ETF sector, with ChinaAMC expected to advantage significantly
In a remarkable turn of events, China's onshore Exchange-Traded Fund (ETF) market has witnessed a significant surge in overseas investments in 2025. This trend is primarily attributed to a strong rotation of investors from gold-backed ETFs to local equity ETFs, fuelled by a robust rally in China’s equity markets.
As of June 30, 2025, China Asset Management Co. (ChinaAMC), one of the largest asset managers in China, boasts a total Assets Under Management (AUM) of over RMB 3.03 trillion (US$423.5 billion). The company has been the largest ETF manager in China for 20 consecutive years, with an AUM of over RMB 750 billion in ETFs alone.
ChinaAMC offers a diverse range of multi-asset investment solutions and one-stop services to investors with various risk-return profiles. The company has the largest number of qualifying ETFs for northbound trading among all Chinese asset managers, with 24 eligible ETFs.
By the end of July 2025, aggregate turnover in southbound trading hit 804.2 billion yuan since the ETF Connect scheme kicked off in July 2022. However, the trend has gradually shifted this year, as northbound turnover caught up and occasionally surpassed southbound turnover. In July 2025, northbound trading into ETFs listed in Shanghai and Shenzhen exchanges under ETF Connect hit 72.2 billion yuan (US$10 billion), the highest monthly level in 2025.
The ETF that tracks CSI Robotics Index drew in the largest net inflow among overseas investors during the Jan-July period among ChinaAMC’s eligible ETFs. Overseas investors hold most in STAR 50 ETF among ChinaAMC’s eligible ETFs, trailed by F&B and Chip ETF.
The surge in overseas inflows into China’s onshore ETF market is largely driven by a shift in investor sentiment. With gold prices stalling, investors are rotating their portfolios towards equities, leading to about 3.2 billion yuan (US$450 million) net outflows from major onshore gold ETFs (Huaan Yifu, Bosera, E Fund, Guotai) in July 2025. This rotation is accompanied by sustained foreign participation through channels like the Stock Connect program that facilitates direct foreign investment into mainland Chinese equities.
ChinaAMC has effectively positioned its ETFs to capture these inflows by aligning with investor sentiment and capitalising on the onshore market’s growth and increasing foreign participation. The company's expertise and market position in China’s ETF landscape, including managing prominent funds and gold-backed ETFs, have enabled them to attract both retail and institutional investors shifting their portfolios towards equities.
This shift reflects a broader trend in China’s equity markets. The CSI 300 Index, a benchmark for the performance of the Shanghai and Shenzhen Stock Exchanges, rose by 5.5% in 2025. This robust rally in the equity markets has buoyed retail investors, as highlighted by analysts like Steve Zhou.
Xu Meng, Executive Manager of Quantitative Investment at ChinaAMC, expressed positive sentiment on China's computing power supply chain and leading companies in the technology industry. The company's strategic positioning and innovative products have positioned them well to benefit from inflows amid changing investor sentiment.
However, it's important to note that investment involves risk, including possible loss of principal. The information provided does not constitute an offer or invitation to invest in any funds. The FX rate is sourced from PBoC.
China Asset Management (ChinaAMC) was founded in April 1998 and is one of the first mutual fund managers in China. The company has led the asset management industry for over two decades with a track-record in product innovation.
Trading value reached 83.94% of the southbound value, compared to 80.27% a year earlier, signifying a growing interest in China’s onshore ETF market from overseas investors. Despite some volatility and macroeconomic uncertainty influencing overall fund flows, the sustained growth and stability of Northbound capital flows through Stock Connect indicate steady foreign interest in mainland China's ETF and equity markets.
In summary, the main factors for the 2025 surge in overseas inflows into China’s onshore ETFs are market-driven rotation from gold to equities amid strong equity market performance and continued foreign access to mainland China through Stock Connect. ChinaAMC has effectively positioned its ETFs to capture these inflows by aligning with investor sentiment and capitalising on the onshore market’s growth and increasing foreign participation.
- The surge in overseas investments into China's onshore ETF market is influenced by a shift in investor sentiment, leading to rotation from gold-backed ETFs to equity ETFs, driven by robust performance in China's equity markets.
- In July 2025, ChinaAMC's ETF tracking the CSI Robotics Index drew in the largest net inflow among overseas investors, highlighting the company's ability to attract investors by aligning with changing investor sentiment.
- The growth and stability of northbound capital flows through Stock Connect indicate sustained foreign interest in mainland China's technology industry, due to its potential in China's computing power supply chain and leading technology companies.
