Broad-based ETFs attracted 1.4 trillion yuan
Posted: Tue Feb 11, 2025 6:40 am
Looking ahead, with policies guiding medium- and long-term funds into the market, large funds, especially insurance funds, are expected to accelerate their entry into the market through ETFs in 2025.
On January 6, it was reported that regulatory authorities are currently in repeated consultations to discuss how to break through the institutional barriers to insurance funds increasing their allocation to the equity market. Combined with the extension of the transition period for the second phase of the Solvency II project and the marginal relaxation of solvency assessments, insurance funds will be the key incremental funds for the equity market in 2025.
According to industry estimates, the room for insurance bc data malaysia funds to increase equity holdings is roughly in the trillions of yuan scale.
The large-scale share purchases by major institutions from 2023 to 2024 were like a visible big hand that created the 3 trillion era of ETFs, directly allowing A-shares to create a historic moment in the third quarter of 2024: the market value of A-share holdings of index funds surpassed active funds for the first time, and equity ETFs have become the mainstay of A-shares.
As of December 31, 2024, the total size of ETFs exceeded 3.7 trillion yuan, an increase of 1.7 trillion yuan from the end of 2023, of which 1.4 trillion yuan was contributed by broad-based ETFs.
To put it bluntly, 2024 is a carnival feast for broad-based ETFs. Nine out of the top ten ETF tracking indices are broad-based. It took only two months for the A500 to become the second largest broad-based index, second only to the CSI 300 Index.
Since October 15, 2024, the shares of A500-related ETFs have grown against the trend, with cumulative net subscriptions exceeding 200 billion yuan.
Behind the stirring up of broad-based ETFs lies the profound policy implications.
The chairman of the China Securities Regulatory Commission once bluntly stated that the market currently urgently needs to address the pain points and bottlenecks in the entry of long-term funds such as social security, insurance, and wealth management into the market, in order to cultivate a market ecology that encourages long-term investment.
On January 6, it was reported that regulatory authorities are currently in repeated consultations to discuss how to break through the institutional barriers to insurance funds increasing their allocation to the equity market. Combined with the extension of the transition period for the second phase of the Solvency II project and the marginal relaxation of solvency assessments, insurance funds will be the key incremental funds for the equity market in 2025.
According to industry estimates, the room for insurance bc data malaysia funds to increase equity holdings is roughly in the trillions of yuan scale.
The large-scale share purchases by major institutions from 2023 to 2024 were like a visible big hand that created the 3 trillion era of ETFs, directly allowing A-shares to create a historic moment in the third quarter of 2024: the market value of A-share holdings of index funds surpassed active funds for the first time, and equity ETFs have become the mainstay of A-shares.
As of December 31, 2024, the total size of ETFs exceeded 3.7 trillion yuan, an increase of 1.7 trillion yuan from the end of 2023, of which 1.4 trillion yuan was contributed by broad-based ETFs.
To put it bluntly, 2024 is a carnival feast for broad-based ETFs. Nine out of the top ten ETF tracking indices are broad-based. It took only two months for the A500 to become the second largest broad-based index, second only to the CSI 300 Index.
Since October 15, 2024, the shares of A500-related ETFs have grown against the trend, with cumulative net subscriptions exceeding 200 billion yuan.
Behind the stirring up of broad-based ETFs lies the profound policy implications.
The chairman of the China Securities Regulatory Commission once bluntly stated that the market currently urgently needs to address the pain points and bottlenecks in the entry of long-term funds such as social security, insurance, and wealth management into the market, in order to cultivate a market ecology that encourages long-term investment.