Institutions using ETFs to invest in Chinese equities and bonds says new research
Institutions are increasing their use of ETFs to access Chinese equities and bonds according to new research by NTree International.
Over three quarters (78%) expect to see an increase in the use of ETFs to access Chinese asset classes over the next three years, found a survey carried out for ETF manager China Post Global.
Two-thirds (67%) of the institutions polled and that speak for US$293bn of managed assets said ETFs 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.
Tim Harvey, NTree’s chief executive, said: “Our research shows the growing demand for Chinese asset classes among institutional investors but also a desire for specialist, innovative products such as ETFs which can provide access at more competitive prices.”