Quantity and Quality Improvements and Return Enhancement Continuous Improvement of SSE ETF Market Attractiveness

Source: Shanghai Securities News, www.cnstock.com

Author: He Xinyi

With the implementation of the policy for deepening capital market reform, the SSE ETF market has achieved high-quality development, featuring rapid scale expansion, product system diversification, and the improvement of investors' sense of gain. By the end of February, 638 ETFs had been listed on the SSE, with a scale of over 2.7 trillion yuan, showing an increase of 77% compared with the scale at the end of 2023.

Steady Growth of the ETF Scale and Continuous Improvement of Market Attractiveness

The SSE ETF market improved both in quantity and quality. The scale of equity ETFs increased steadily, and that of SSE stock ETFs exceeded 2 trillion yuan. The total scale of CSI 300 ETFs reached 800 billion yuan, an increase of 2.33 times compared with that at the end of 2023. The total scale of STAR Market 50 ETFs reached 170 billion yuan, and that of SSE 50 ETFs exceeded 150 billion yuan. In 2024, broad-based index products such as CSI A500 and CSI A50 were launched and welcomed by the market. On the SSE, the scale of A500 ETFs was nearly 130 billion yuan, that of A50 ETFs reached 13 billion yuan, and that of SSE 180 ETFs exceeded 23 billion yuan. The annual net ETF inflow was 840 billion yuan.

Products with low risks and stable returns were continuously expanded. On the SSE, the scale of bond ETFs exceeded 180 billion yuan, an increase of 2.3 times compared with that at the end of 2023. The scale of dividend ETFs exceeded 100 billion yuan, an increase of 1.75 times compared with that at the end of 2023. The scale of the first batch of benchmark market-making credit bond ETFs reached about 12 billion yuan, and that of the first batch of the CSI China Reform Hong Kong Connect Central SOEs High Dividend Yield Index ETF was nearly 10 billion yuan. By the end of 2024, nearly 10 million accounts participated in ETFs on the SSE.

An Increasingly Diversified System for the SSE STAR Market's ETF Products and Greater Support for Scientific and Technological Innovation Development

The SSE actively laid out the new quality productive forces field, and the supply of ETF products on the SSE STAR Market continued to be optimized. After the release of the "Eight Measures of the STAR Market", 32 STAR Market ETFs were launched, and 54 ETFs were approved, doubling the number. The first STAR Market 200 ETFs and other products were launched successively, and the issuance of STAR Market Composite Index ETFs raised more than 22 billion yuan. By the end of February, there had been 49 ETFs listed on the SSE STAR Market, with a scale of 230 billion yuan, up by 35% year on year. The scale of industry-themed ETFs on the STAR Market exceeded 32 billion yuan, doubling from that in the previous year. The proportion of index-based investment reached 8.3% on the SSE STAR Market.

Continuous Improvement of ETF Investors' Sense of Gain

At the beginning of 2025, the yield performance of broad-based index products on the SSE STAR Market was impressive, with the yields of STAR Market 50, STAR Market 100, and STAR Market 200 products reaching 9.6%, 15.7%, and 16.3% respectively. The yields of core broad-based index products on the SSE have been high since 2024. ETFs listed on the SSE have actively implemented dividend distribution. This year, 17 ETFs have distributed dividends with a total amount of 6.56 billion yuan, reaching 37% of the amount throughout last year.

According to industry professionals, the advancement of capital market reform has provided a broad space for the ETF market. ETFs will play a more significant role in serving national strategies, attracting medium- and long-term capital into the market, and meeting residents' wealth management needs.

The above information is provided for reference purposes only and does not constitute investment advice.