CSRC Supports Active ETFs, SSE and SZSE to Promote Development

Wu Qing, Chairman of China's Securities Regulatory Commission (CSRC), announced today at the 2026 Lujiazui Forum his support for promoting active ETFs on the Shanghai and Shenzhen stock exchanges, aiming to further diversify investment products and tools. Industry analysts suggest this could encourage greater participation from both domestic and international long-term capital in China's capital markets.

According to reports from China Fund News and 21st Century Business Herald, most ETFs currently available in the Shanghai and Shenzhen markets are passive index-tracking products. In recent years, ETFs have grown rapidly in China, with their operational models and advantages increasingly favored by both individual and institutional investors.

Since 2021, index-enhanced strategy ETFs have been launched in China, which incorporate a degree of active management on top of passive tracking. However, fully active ETFs have not yet been introduced in the Chinese market.

Wu Qing's remarks at the Lujiazui Forum signal that the launch of active ETFs on the Shanghai and Shenzhen exchanges is imminent. This marks a pivotal shift for China's domestic ETF market, transitioning from an era dominated by passive index tools to a new phase characterized by 'active management + productization'.

Industry insiders emphasize that developing active ETFs is not merely about expanding product variety. It carries strategic significance in enhancing market functionality and attracting long-term capital, representing a crucial step toward alignment with international financial markets. As global active ETFs experience rapid growth, timely regulatory support from China could help attract more long-term domestic and foreign capital into its markets.

Global active ETF markets are undergoing unprecedented growth. Data from ETFGI shows that as of the end of April 2026, global active ETF assets reached a record high of USD 2.33 trillion. Net inflows since the beginning of 2026 have totaled USD 311.66 billion, setting a new record for the same period.

Given that active ETFs remain a novel concept in China, regulators have clearly indicated a phased, measured, and steady approach to development. Initial pilot products will be launched first, accompanied by the refinement of supporting regulations. Once the first batch of pilot products operates smoothly, the product range will gradually expand, continuously enriching wealth management tools.