Shanghai Securities News｜ETF Markets Usher in Important Opportunities: Net Inflow of SSE ETFs Reaches Nearly RMB 130 Billion in 2025

Translated from Shanghai Securities News—www.cnstock.com

(Shanghai Securities News, www.cnstock.com) (Reporter He Xinyi) At the Seminar on Promoting Index-Based High-Quality Development of Capital Market held by Guotai Haitong Securities Co., Ltd. on April 16, a relevant person in charge of the Shanghai Stock Exchange (SSE) said that index-based investment represented by exchange-traded funds (ETFs) has become an important engine for promoting high-quality development of the capital market. According to the introduction, in 2024, the net inflow of ETFs in the two markets totaled about RMB 1.2 trillion, of which SSE ETFs had a net inflow of RMB 840 billion. Since the beginning of this year, the net inflow of ETFs in the two markets has reached about RMB 200 billion, of which SSE ETFs have a net inflow of nearly RMB 130 billion, accounting for about 70%.

In recent years, index-based investment has been recognized and accepted by more investors, showing the following four major characteristics.

First, the ETF markets have seen improvement in both quantity and quality. At present, the number of ETF products has exceeded one thousand, with a total scale of RMB 3.9 trillion. Among them, the scale of stock ETFs is RMB 2.9 trillion, and that of SSE stock ETFs exceeds RMB 2 trillion. Broad-based, bond and dividend ETFs are particularly favored by the markets, with significant growth in scale. Among them, the scale of SSE broad-based ETFs is nearly RMB 1.6 trillion, that of bond ETFs exceeds RMB 200 billion, and that of dividend ETFs is about RMB 100 billion. At present, there are four SSE ETFs with a scale of more than RMB 100 billion each, accounting for 80% of the total in the two markets; there are 52 SSE ETFs with a scale of over RMB 10 billion each, accounting for 71% of the total in the two markets. ETF products have also attracted more international funds to invest in China through indexed methods. According to the relevant person in charge of SSE, the scale of offshore products tracking SSE and China Securities Index Co., Ltd. has reached RMB 150 billion.

Second, the layout of ETF products is constantly enriched. Since 2024, over 60 broad-based ETFs have been listed on SSE. Among them, new index products such as the STAR Market Composite Index ETFs, the CSI A50 Index ETFs, and the CSI A500 Quality Index ETFs are being launched at an accelerated pace. In terms of stable products, 14 free cash flow ETFs were approved and issued in SSE recently. Since the beginning of this year, four SSE benchmark market-making credit bond ETFs have been issued and listed, with a current scale of nearly RMB 20 billion.

Third, the ETF products remain popular on the STAR Market. The relevant person in charge of SSE said that since the release of the "Eight Measures", 42 STAR Market ETFs have been listed and 57 STAR Market ETFs have been approved, doubling the number before the release of the "Eight Measures". At present, the scale of STAR Market ETFs is nearly RMB 250 billion, playing a positive role in serving the development of new quality productive forces and greater self-reliance and strength in science and technology. Recently, several STAR Market Composite Index ETFs and their feeder funds were issued, with a total fundraising scale of more than RMB 40 billion.

Fourth, more and more investors recognize the new trend of index-based investment represented by ETFs. The relevant person in charge of SSE introduced that as the concept of index-based investment continues to gain popularity, the participation in the ETF markets has steadily increased. At present, there are nearly 10 million accounts in SSE ETFs. To further strengthen investor returns, SSE is also actively guiding ETFs to establish a stable dividend mechanism. In 2024, the number and amount of products listed on SSE accounted for 75% and 85% respectively in domestic ETF dividends. Since 2025, fund dividends have exceeded RMB 70 billion, among which SSE broad-based ETF dividends and dividend ETF dividends rank high and are becoming an important force in fund dividends.

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