Investment stream into China's Exchange-Traded Fund (ETF) sector is surging, with China Asset Management Company (ChinaAMC) expected to reap the benefits.

Investment stream into China's Exchange-Traded Fund (ETF) sector is surging, with China Asset Management Company (ChinaAMC) expected to reap the benefits.

China's Onshore ETF Market Sees Record Highs and Rapid Growth

In a significant development, Northbound trading into ETFs listed in Shanghai and Shenzhen exchanges under ETF Connect reached a record high of 72.2 billion yuan ($10 billion) in July 2025, surpassing the volume from March 2025 and marking the highest monthly level of Northbound trading this year. This trend showcases a strong and growing overseas inflow into China's onshore ETF market.

China Asset Management (ChinaAMC), one of the leading fund managers in China, is well-positioned to benefit from this growth. With the largest number of eligible ETFs for Northbound trading among all Chinese asset managers, ChinaAMC has 24 eligible ETFs at its disposal. As of June 30, 2025, ChinaAMC's total Assets Under Management (AUM) exceeded RMB 3.03 trillion (US$423.5 billion).

The current trend of increased overseas investment in China's onshore ETF market contrasts with Mainland China's investment flow into Hong Kong. While significant, Mainland investment in Hong Kong ETFs is characterized by sustained participation through schemes like ETF Connect that help Mainland investors access Hong Kong ETFs.

In the first half of 2025, China launched 166 ETFs, already more than half the record 277 issued in 2021, indicating booming investor interest and momentum in the onshore ETF space. This growth in onshore ETF investments by overseas investors is correlated with strong cross-border capital movements, as evidenced by a reported surge in Chinese investors’ foreign exchange holdings, reaching $1 trillion with a net increase of $165.5 billion in H1 2025.

ChinaAMC's core strength lies in discovering, defining, and managing assets. With a product lineup aligned with investor demand dynamics, extensive distribution channels, and a rising interest in passive investment strategies in China, ChinaAMC stands to gain significantly from the inflows fueling the onshore ETF market growth. Moreover, as Mainland investors look to diversify and engage with both onshore and Hong Kong markets, ChinaAMC's ability to manage cross-border ETF strategies and leverage policies such as the ETF Connect enhances its growth potential.

The ETF that tracks the CSI Robotics Index drew in the largest net inflow among overseas investors during the Jan-July period. The volume of Northbound trading in July 2025 also surpassed that of Southbound trading for the second month (June and July). Historically, Southbound trading has been more active than Northbound trading, but this trend has gradually shifted in 2025. By the end of July 2025, aggregate turnover in Southbound trading was 804.2 billion yuan since the ETF Connect scheme kicked off in July 2022, 11.23% above that of Northbound trading.

ChinaAMC offers multi-asset investment solutions and one-stop services. Overseas investors hold most in the STAR 50 ETF among ChinaAMC's eligible ETFs, trailed by the F&B and Chip ETF. It's important to note that the information provided is for reference only and does not constitute an offer to invest in any funds.

In summary, the rapid growth of overseas inflows into China’s onshore ETF market is a testament to the increasing interest in passive investment strategies and the expanding investor base both domestically and overseas. ChinaAMC, with its commanding market position and product offerings aligned with investor demand dynamics, is well-positioned to benefit substantially from these trends.

1. The ETF that tracks the CSI Robotics Index, a product offered by China Asset Management (ChinaAMC), drew in the largest net inflow among overseas investors during the Jan-July period of 2025, indicating a growing interest in innovative sectors such as robotics.
2. In the financial news, it has been reported that ChinaAMC's STAR 50 ETF, among the eligible ETFs, attracts the highest assets from overseas investors, signaling a shift in investing preferences towards technology and consumer-related sectors.
3. As cross-border capital movements escalate, with Chinese investors’ foreign exchange holdings reaching $1 trillion by the end of H1 2025, businesses focused on the finance and investing sector, like ChinaAMC, stand to benefit significantly from the growing interest in China's onshore ETF market.

Read also: