Domestic ETFs Surge on Chinese Economic Stimulus
In the domestic ETF market, Hanwha Asset Management’s ‘PLUS Shenzhen ChiNext (Synthetic)’ recorded the highest weekly increase of 22.84%. This ETF tracks the ChiNext index on the Shenzhen Stock Exchange and is predominantly composed of technology and healthcare companies. Following the announcement of large-scale stimulus measures by the Chinese government, the Chinese stock market saw a strong rebound. Samsung Asset Management's ‘KODEX China Shenzhen ChiNext (Synthetic)’ rose by 20.98%, while Korea Investment & Securities' ‘ACE China Hang Seng Tech’ and Samsung Asset Management's ‘KODEX China Hang Seng Tech’ rose by 18.55% and 18.46%, respectively. Other significant gainers include ‘TIGER China Hang Seng Tech’, ‘RISE China Hang Seng Tech’, ‘KOSEF China Domestic Consumption TOP CSI’, and ‘TIGER China Semiconductor FACTSET’.
Following the Chinese government's announcement of economic stimulus measures, the Chinese stock market expanded, leading to a surge in related ETF returns. The ‘KOSEF China Domestic Consumption TOP CSI’ ETF posted a 14.32% return over the past week. The People's Bank of China announced a 0.5% reduction in the reserve requirement ratio to provide long-term liquidity to financial markets. Additionally, policies aimed at stabilizing the housing loan rates and stock markets were introduced. Experts emphasized that additional fiscal policies and strong enforcement are required to address the prolonged economic downturn in China.
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