A push by Beijing to pump money into Chinese equity markets appears to have prompted a surge in investment resulting in China accounting for almost a third of global exchange traded fund flows in August, reports the Financial Times. China-focused equity ETFs saw record net inflows of $20.6 billion in August, two-and-a-half times the level in July, according to data from BlackRock, dwarfing the $11.1 billion pulled in by ETFs focused on US equities. The money that poured in all came from Asia Pacific-listed funds including China, with US and European investors actually pulling money out.
The BlackRock data does not provide a granular view of exactly where in the Apac region the flows originated, but it coincided with the introduction of multiple official measures to stimulate the Chinese stock market. Beijing halved the stamp duty on stock trading last month, while management fees have been cut on more than 70% of actively managed funds, according to data from Wind, after the China Securities Regulatory Commission lowered the maximum fee funds can charge.
The CSRC also fast-tracked the approval of 17 ETFs—all focused either on small companies or technology stocks—as well as 20 mutual funds, on a single day last month.