The Chinese mainland's ETF market has reached a historic 5.78 trillion yuan ($820 billion) in assets under management this year, driven by unprecedented retail participation and supportive regulatory measures. Wind data reveals a 2 trillion yuan growth since January 2025, marking a 53% year-to-date increase.
Four-Month Trillion-Yuan Leap
This year's expansion pace shattered previous records, with ETFs adding 1 trillion yuan in just four months – a stark contrast to the 14 years required to reach the first trillion. China Securities analyst Yao Ziwei noted: 'ETFs democratize access to sector-specific growth, eliminating stock-picking complexities for individual investors.'
Policy Engine Drives Innovation
The 2024 nine-point capital market reform blueprint accelerated ETF approvals while channeling funds into strategic tech sectors. Parallel growth emerged in Fund of Funds (FOFs), with 79 new products raising 80.35 billion yuan in 2025 – exceeding the previous three years' combined total.
Tech Focus Stabilizes Markets
Analysts highlight concentrated investments in semiconductors, AI, and green energy through products like the STAR 50 ETF. Yao emphasized: 'These instruments simultaneously empower retail investors and provide stability to innovation-driven markets.' Institutional inflows through ETFs and FOFs are credited with reducing volatility while supporting industrial upgrading.
