China Approves First 18 Actively Managed ETFs Across Two Exchanges

China has approved its first batch of 18 actively managed ETFs, marking a major expansion of its domestic ETF market. Nine products are set to list on the Shanghai Stock Exchange and nine on the Shenzhen Stock Exchange, with issuers including E Fund, ChinaAMC, Southern Fund, Huatai-PineBridge and Penghua Fund. The lineup comprises nine balanced strategies, four value strategies, three dividend strategies, one quality strategy and one large-cap growth strategy. Thirteen funds will use fundamental stock selection, while five incorporate quantitative approaches. The approvals follow the China Securities Regulatory Commission's June decision to support active ETFs, with launches expected to begin shortly and listings potentially within a month. The new products will combine active stock selection with daily portfolio transparency and exchange trading, opening a new competitive segment in China's ETF industry.