China's ETF market sees tighter competition and private‑equity surge in H1 2026

In the first half of 2026 the Chinese exchange‑traded fund (ETF) sector displayed a notable shift in competitive dynamics. Leading fund managers Huaxia Fund and Yifangda Fund reported assets of ¥5.9655 trn and ¥5.8216 trn respectively, narrowing the gap between them to ¥144 bn. Guotai Fund added ¥850.57 bn, moving into third place, while some incumbents slipped as broad‑base ETF volumes contracted.

Wind data showed a net outflow of about ¥1.8 trn from wide‑based ETFs, contrasted by continued inflows into thematic ETFs: communication (+¥455.03 bn), semiconductor (+¥410.06 bn), satellite (+¥245.71 bn) and power‑grid equipment (+¥219.24 bn). Industry observers said this reflects a reallocation rather than a withdrawal from the ETF market.

Private‑equity firms also grew their presence. According to Paipa Net, 95 private institutions held a combined 12.14 bn ETF shares across 106 funds, with 44 ETFs receiving allocations of at least 10 m shares. Notable private‑equity holdings included 51.9 m shares in a sci‑tech AI ETF, 48.9 m in a securities ETF, and 42.9 m in a home‑appliance ETF.

Analysts emphasized that the sector is moving from pure scale competition to a focus on product quality, brand building and specialized research capabilities.