China’s Passive Equity Assets Exceed Active Ones for First Time
- Passive investment trend in China accelerated in third quarter
- Active funds suffered redemption pressure in September rebound
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Chinese stocks managed by passive funds have overtaken the size of those under actively-managed peers, marking a major milestone as the country rapidly catches up with the global passive boom.
The total value of onshore stocks held by passive funds including exchange-traded products swelled to 3.16 trillion yuan ($443 billion) at the end of the third quarter, according to figures compiled by Minsheng Securities Co. The tally has edged past that of active mutual funds, whose mainland equities under management ticked up to 2.84 trillion yuan, for the first time ever.