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China: China's ETF market draws increasing foreign investment

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[Voiceover] Recent data shows that China's market for equity exchange-traded funds has seen an increase in foreign investment, with the global scale of China's asset-related ETFs also increasing. According to the latest reports, Barclays now holds 200 ETFs compared to last year's 135 and UBS Group AG has more than doubled their previous 57 ETFs to 141. ETFs issued by institutes like BlackRoc and the Vanguard Group, which track Chinese stock indexes, have been drawing increased attention from the market. [Soundbite] Yang Delong, Chief economist, First Seafront Fund: "As of Aug 29, the capitals under the management of five offshore ETFs of relatively large scale linked to Chinese stocks have totaled 26.6 billion U.S. dollars, up by over 10 percent compared with late July." [Voiceover] Analysts say foreign investors seem to be recognizing the long-term value of Chinese offshore ETFs, which represent medium-to-long-term allocation strategies. [Soundbite] Ronald Wan, Chief executive, Partners Fintech Holdings Limited: "Foreign investors are particularly focused on long-term factors when buying Chinese assets and their core focus is on predictability, such as the capability of China to pursue sustainable long-term economic growth and the stable global statuses of the country's high-potential sectors. Inflow of foreign investment not only boosts market sentiment but also reinforces the international recognition of RMB-linked assets." [Voiceover] According to market data tracker FUTU, in July this year, five major overseas China equity-exchange traded funds collectively earned 2.7 billion U.S. dollars in net inflows. [Restrictions: No access Chinese mainland]

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