(Bloomberg) — A Chinese exchange-traded fund that tracks the tech-heavy ChiNext Index attracted the biggest inflows among ETFs globally last week, as retail investors chased returns that have risen sharply after an economic stimulus blitz.
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The E Fund ChiNext Price Index ETF attracted net inflows of 35 billion yuan ($5.3 billion) last week, according to data compiled by Bloomberg. That helped the ETF nearly double its market cap in the nine trading sessions between the central bank’s stimulus announcement and the end of last week — while the underlying ChiNext gauge rose a more modest 37%.
The E-fund was one of the favorite purchases of the so-called National Team of sovereign wealth funds during the stock market turmoil. But last week’s rise may be more attributable to retail investors, who are increasingly favoring ETFs as a way to buy stocks.
Most of last week’s inflows came on Oct. 9, the first trading day allowed for retail traders opening accounts during Golden Week, according to data compiled by Bloomberg. To trade ChiNext-listed shares directly, new retail investors must have a trading record of at least 24 months. Buying through ETFs would be easier for novice traders who may have been tempted by ChiNext’s back-to-back double-digit weekly gains.
–With help from Jack Wang.
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