China’s Incredible Shrinking Exchange-Traded Funds

China’s exchange-traded fund (ETF) market has boomed over the past four years, as asset managers launched new funds offering retail investors a convenient way of getting exposure to hot sectors, such as semiconductors, without having to buy individual stocks.

As of the end of May, the number of ETFs listed on Chinese mainland stock exchanges surpassed 700 with combined net assets of 1.7 trillion yuan ($240 billion), more than triple the value at the end of 2018, according to financial data service provider Choice.