The Chinese economy remains strong, with over 3,000 A-share listed companies reporting a year-on-year increase in revenue and over 4,100 companies reporting positive net profit in the first half of 2024. This positive outlook, coupled with the Federal Reserve’s recent rate cut, has fueled an increase in international investor interest in Asian stocks, particularly in China.
E Fund Management, the largest mutual fund manager in China, has been a key beneficiary of this trend. Their comprehensive ETF portfolio, consisting of 21 broad-based ETFs tracking performance across various market caps, including the E Fund CSI 300 ETF and MSCI China A50 Connect ETF, has seen significant inflows, totaling approximately US$100 billion in the first eight months of 2024.
E Fund’s sophisticated strategies and risk management have yielded impressive results. The E Fund CSI 300 ETF, for example, achieved a 2.33% excess return while maintaining an annualized tracking error of 0.45% in the past year, surpassing the average of 2.07% excess return and 0.46% annualized tracking error for similar ETFs.
Established in 2001, E Fund Management has over RMB 3.3 trillion (US$ 454 billion) in assets under management, serving both individual and institutional clients, including central banks, sovereign wealth funds, and major financial institutions. The company is a pioneer in responsible investing in China and is recognized as a leading and trusted asset manager.
As the Chinese economy continues to show strength and international investors seek opportunities in Asia, E Fund Management and its broad-based ETF portfolio are well-positioned to capitalize on this growing trend.
