China’s Dividend ETF Market Growth
As of 2025, China’s dividend-focused equity ETFs represent approximately 4% of total equity ETF assets under management (AUM), equating to about US$26 billion, in a broader equity ETF market valued at US$612 billion. In comparison, U.S. dividend ETFs account for around 6% of equity ETF AUM, translating to approximately US$563 billion out of a total market exceeding US$9.9 trillion.
Recent trends indicate significant growth in China’s dividend ETF segment, which began accelerating in 2023. AUM for these ETFs has surpassed US$30 billion, primarily driven by A-share-linked products, while the emerging Hong Kong Stock Connect dividend ETFs have gained traction. By January 2026, A-share products commanded around US$18 billion, in contrast to US$12 billion for H-share counterparts, both attracting similar net inflows of approximately US$4 billion over the past year.
Performance analysis reveals that H-share dividend ETFs outperformed A-share ETFs, with total returns three to four times higher in the year leading up to January 2026. Notably, investor composition diverges between the two segments; A-share products are largely fund-driven, whereas H-share ETFs see significant contributions from insurance investors.
