China funds slash ETF fees, escalating price war in booming market

Published On Nov 21, 2024, 9:54 AM

Chinese fund companies have significantly reduced fees on several equity ETFs, with cuts as much as 70% in management fees. This change comes in response to increasing competition in the ETF market, which has expanded rapidly to about $400 billion. The fee reductions aim to attract investors who have been dissatisfied with traditional active fund managers. Major fund firms like China Asset Management Co. announced fee cuts across various products, reflecting a shift towards passive investing in the Chinese market. As these funds become more affordable, they are expected to draw in more capital especially as retail investors favor ETFs over traditional funds.