The largest onshore exchange-traded funds tracking the CSI 300 Index, the ChiNext Index and the STAR 50 Index saw a combined net outflow of about 40 billion yuan ($7.43 billion) so far till Nov 25, on track for the biggest monthly sales on record.
Retail investors are cashing out from China’s exchange-traded funds, risking further market volatility if Beijing fails to boost sentiment, according to analysts.
ETFs have seen net outflows since late October, according to an analysis by Haitong Securities. ETFs have been a popular choice for local retail investors to invest in stocks, as it is a hassle-free and less expensive tool that allows them to pursue themes such as dividend stocks that dovetail with Beijing’s priorities.
