Nobody can ignore the rapid evolution of China over recent decades. And as one of the first countries globally to try to return to ‘normal’ following the pandemic, there are opportunities for investors to capitalise on the evolving domestic markets.
While many investors across Asia are beginning to put more assets into passive funds, some remain reluctant to do so.
Asset owners could evolve their usage of index funds and ETFs by turning to more environmental, social and governance plus fixed-income vehicles, say experts.
ETFs could gain traction among institutional investors seeking flexibility to take quick tactical positions. But the instruments face potential new regulations in Hong Kong.
Asset owners across Asia Pacific look set to slowly raise the amount of passive investments in their overall portfolios, as they continue to absorb new flows of assets.
The island's bond ETF volumes have shot up over the past two years but they are likely to level off as new rules combine with less risk appetite among leading life insurers.