Chinese fund companies slash ETF fees to boost competition in the $400 billion market.

Major Chinese fund companies have significantly reduced fees for equity exchange-traded funds (ETFs) to spur competition in the rapidly growing $400 billion market. These cuts, dropping management fees from 0.5% to 0.15% and halving custodian fees, follow the Chinese securities regulator's push for fee reform and index investment. The move aims to attract more investors, especially as ETFs have outperformed active funds this year, gaining 16% compared to the 3% increase of active equity funds.

November 20, 2024
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