Amid market fluctuations, A500 ETFs have become a prime target for capital inflows. On December 17, during an A-share rebound, trading activity in A500 ETFs surged to unprecedented levels. Wind data shows that 45 A500 ETFs (including enhanced index and low-volatility dividend variants) recorded a combined turnover exceeding RMB 52 billion, far surpassing that of CSI 300 ETFs and making them the most active equity ETFs that day.
From December 12 to December 18, 2025, daily turnover for A500 ETFs consistently exceeded RMB 40 billion for five consecutive trading sessions. Notably, on December 17 alone, net inflows into A500 ETFs surpassed RMB 11 billion, with large public fund offerings leading the charge.
Bolstered by net subscriptions, the total assets under management (AUM) of A500 ETFs recently exceeded RMB 230 billion, marking an increase of nearly RMB 37 billion since late November. Among them, Huatai-PineBridge and Southern Fund’s A500 ETFs each surpassed RMB 30 billion in AUM, forming a duopoly in the sector.
Industry experts attribute the massive trading volume and scale expansion of A500 ETFs to the deepening institutionalization and indexing trends, as well as improved access for "patient capital" into the market.
Behind the surge in trading, the Shanghai Composite Index rose for two consecutive days on December 17 and 18, highlighting the trend of capital entering the market via broad-based ETFs. Wind data reveals that 13 ETFs, predominantly broad-based, saw daily turnover exceeding RMB 2 billion on December 17. Five A500 ETFs alone accounted for top spots, with Huatai-PineBridge, ChinaAMC, Southern, Guotai, and E Fund’s offerings leading at RMB 14.12 billion, RMB 9.75 billion, RMB 8.06 billion, RMB 7.36 billion, and RMB 6 billion, respectively.
Trading momentum wasn’t limited to market rebounds. Since early December, A500 ETF activity has steadily intensified, with daily turnover consistently above RMB 40 billion from December 12–16, compared to RMB 26–30 billion in the first four trading days of the month.
Li Yiming, senior analyst at Morningstar China, noted that the surge reflects expectations for year-end market performance and policy catalysts, with domestic and global easing policies driving capital allocation. The A500 Index, as a key broad-based benchmark, serves as an ideal tool for diversified exposure, aligning with institutional demand for balanced risk distribution.
On December 17, net inflows into equity ETFs totaled RMB 16.29 billion, of which A500 ETFs absorbed RMB 11.16 billion (68.5%). Large fund houses dominated inflows, with Huatai-PineBridge, Southern, Guotai, and GF attracting RMB 3.28 billion, RMB 2.63 billion, RMB 1.37 billion, and RMB 1.13 billion, respectively.
Bi Mengran, researcher at GES Fund, identified three institutional drivers behind the inflows: insurance capital (benefiting from relaxed risk factor adjustments), bank wealth management subsidiaries and broker proprietary trading (targeting year-end rebounds and new productivity sectors), and foreign investors (attracted by valuation appeal).
As secondary market demand surged, net subscriptions further widened the AUM gap among A500 ETFs. From December 15–17, Southern, Huatai-PineBridge, ChinaAMC, Guotai, and GF saw their ETF units increase by 6.28 billion, 4.3 billion, 1.62 billion, 1.37 billion, and 1.21 billion, respectively.
By December 17, Huatai-PineBridge’s A500 ETF led with RMB 37.78 billion in AUM, followed by Southern (RMB 33.15 billion) and ChinaAMC (RMB 26.3 billion). The top five collectively held over RMB 100 billion, underscoring a clear "winner-takes-most" dynamic.
Looking ahead, Bi emphasized that scale expansion, product refinement, and differentiation will shape the A500 ETF landscape. Innovations like smart-beta strategies (e.g., ESG enhancements and sector rotation factors) may disrupt homogeneity. Li Yiming added that the A500 Index’s balanced sector exposure and focus on industry leaders position it for long-term growth, blending value and growth attributes.
Investors are advised to note the rising utility and allocation value of A500 ETFs as tools for diversified market participation.
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