Chinese Investors Flock to Japan ETFs as Local Market Slumps

  • ETFs tracking Japanese benchmarks saw assets surge in May
  • Japan stocks outperform global peers while China’s slump
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China’s mom-and-pop investors are rushing to buy Japanese equity products as the stock market at home shows little sign of a revival.

Some Chinese exchange-traded funds that track the Nikkei 225 index saw their assets more than double in May, according to an analysis by Mizuho Securities Co. The Japanese benchmark rose 7% that month to reach a three-decade high, a feat that contrasts with a 5.7% slump in China’s CSI 300 Index.