China Business Insider - News From Caixin Global

Passive investment has been booming in the global market in recent years. As market effectiveness improves, outperforming returns are increasingly difficult to achieve. Alpha returns are competing with indices. High transparency and low management fees are also contributing to the trend of passive investment eating into active.

China is no exception. Since the first index fund was introduced in 2002, the country has been catching up with the global index trend. As of January 2022, there were more than 1,500 index funds totaling 1.8 trillion yuan ($290 billion), in which exchange-traded funds (ETFs) played a key role. Chinese ETFs held 1.4 trillion yuan of assets at year-end, up 28% from the beginning of the year.

Looking ahead, China’s passive investment will be supported by financial regulators’ determination to draw in more long-term capital. Better coverage of sectors, improved interconnectivity, and increased supply of derivatives and other hedging tools are all contributing to a larger future. However, this market is dwarfed in size by its peers in developed economies, and many products offered are considered homogeneous in structure and performance.

In the third episode of “China Finance with a Cup of Tea,” Caixin invited Dr. Jason HSU, founder, chairman & CIO of Rayliant Global Advisors, and FAN Bing, director and senior portfolio manager at E Fund Management, to share their insights on passive investment in China and what international investors can do to navigate this market.

Residents get fed up with tough virus controls; financial hub’s daily coronavirus infections surpass Wuhan’s 2020 peak; and U.S. team arrives in China to probe Boeing crash.

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The introduction of new ingredients throughout the dynasties is illustrated on the page

Read the article by Zhu Jianing https://www.caixinglobal.com/2022-02-12/long-read-how-mouth-watering-delicacies-from-beyond-china-pepper-its-classic-novels-101840671.html

Narrated by Kaiser Kuo

As omicron variants spur China’s worst flare-ups since 2020, policymakers move to tweak the largely successful Zero-Covid strategy.

Read the article by Jiang Moting, Cui Xiaotian and Han Wei: https://www.caixinglobal.com/2022-03-21/cover-story-chinas-covid-response-calibration-101858535.html

Narrated by Ryan Cunningham.

Disregarding official policy, local authorities for weeks withheld reporting of a third of fatalities in epic flooding, government investigators find.

Read the article by Zhou Dongxu: https://www.caixinglobal.com/2022-01-24/opinion-the-zhengzhou-disaster-cover-up-spotlights-a-longstanding-reflex-101833906.html

Narrated by Nandini Venkata.

The latest domestic efforts to inoculate girls against the virus; Communist Party expels former justice minister for ‘inflated’ political ambitions; and Covid controls cause severe delays at Shanghai ports.

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New research shows infections can lead to neurological and respiratory complications; Shanghai signals support for importing foreign Covid vaccines; and U.S. plane crash investigators head to China.

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More than 600 medical researchers linked to fake papers; local governments step up efforts to support businesses amid Covid outbreaks; and it’s been a bumpy ride for Xpeng.

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Financial hub tightens restrictions amid its fiercest Covid outbreak; more Chinese children suffer from depression; and Huawei’s revenue shrinks for the first time in 19 years.

Plus, Beijing envoy says China’s relations with Russia do have a bottom line; DJI finds itself in the hot seat; and U.S. regulators get tough on Weibo.