ETFs & Mutual Funds

China Stocks Euphoria Fuels Surge in Emerging-Market ETF Flows

  • China saw biggest inflow in EM of $2b led by KraneShares CSI
  • Government stimulus boost investors’ confidence over economy

The extended rally came after three of China’s largest cities relaxed rules for homebuyers, while the central bank also moved to lower mortgage rates. 

Photographer: Qilai Shen/Bloomberg
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Money managers plowed cash into exchange-traded funds that buy Chinese stocks last week as a wave of fresh stimulus measures in the Asian giant boosted confidence in the country’s battered stock market.

Inflows to U.S.-listed emerging market ETFs that invest across developing nations as well as those that target specific countries totaled $3.87 billion last week — the biggest weekly inflow since December. Four leading ETFs that invest in Chinese stocks received about $1.44 billion in cash, the most since 2022.