China remains major growth area in Asia-Pacific region, JPMorgan executive says

Core Insights - China is identified as a major contributor to JPMorgan Asset Management's five-year plan to double its Asia-Pacific assets under supervision to approximately US$600 billion, with a long-term goal of reaching US$1 trillion [1][2]. Group 1: Growth Strategy - The three largest capital markets supporting this growth plan are China, Australia, and Japan, with assets under management in the region already exceeding US$300 billion, which is double the amount from 2019 [2]. - The CEO of Asia-Pacific at JPMorgan Asset Management emphasized that China is a significant long-term strategic priority, believing in the long-term prospects of the onshore China asset-management business [3]. Group 2: Investment Trends - Global investors are increasingly focusing on major Chinese firms in technology and energy sectors to diversify their investment portfolios amid geopolitical tensions [4]. - Exchange-traded funds (ETFs) are expected to be a growth area due to rising interest in China equities among both international and Chinese retail investors [5]. Group 3: ETF Market Development - The onshore ETF market in China reached over 5 trillion yuan (approximately US$700.2 billion) in market value as of August, marking an increase from 4 trillion yuan in just four months [6]. - China has surpassed Japan to become the largest ETF market in the Asia-Pacific region, showcasing its potential for international investors to diversify portfolios and secure steady returns [7]. - JPMorgan Asset Management has invested about US$4.5 billion in 10 ETFs listed in China, following its full ownership of its China joint venture in 2023 [7].