ETFs ''increasingly favoured'' for China exposure by European institutional investors
ETFs are increasingly being used to gain exposure to Chinese equities and bonds, according to new research which asked the views of 150 European institutional investors and wealth managers with a combined AUM of $292.8bn . Over three quarters (78%) expect to see an increase in the use of ETFs to access Chinese asset classes over the next three years. The study was carried out by NTree International on behalf of investment manager China Post Global. When asked why they think the use of China focused ETFs will increase between now and 2024, 67% of institutional investors said that they provided a more specialist and niche exposure to Chinese equities and bonds. A further 60% said it is because there is greater innovation in the ETF marketplace, over half (55%) said that they are more competitive than mutual funds, and 54% said that their liquidity is expected to improve. The research also highlighted the growing interest in Chinese capital markets, with three quarters (75%) of institutional investors expecting foreign investment into Chinese equities to increase and 63% expecting foreign investment into fixed income to increase.
ETFs ''increasingly favoured'' for China exposure by European institutional investors
ETFs are increasingly being used to gain exposure to Chinese equities and bonds, according to new research which asked the views of 150 European institutional investors and wealth managers with a combined AUM of $292.8bn . Over three quarters (78%) expect to see an increase in the use of ETFs to access Chinese asset classes over the next three years. The study was carried out by NTree International on behalf of investment manager China Post Global. When asked why they think the use of China focused ETFs will increase between now and 2024, 67% of institutional investors said that they provided a more specialist and niche exposure to Chinese equities and bonds. A further 60% said it is because there is greater innovation in the ETF marketplace, over half (55%) said that they are more competitive than mutual funds, and 54% said that their liquidity is expected to improve. The research also highlighted the growing interest in Chinese capital markets, with three quarters (75%) of institutional investors expecting foreign investment into Chinese equities to increase and 63% expecting foreign investment into fixed income to increase.