Recently, the A-shares experienced a significant surge, only to correct within a week, prompting investors to question the sustainability of this bullish trend. A computer screen showcased the latest stock market data, reflecting this volatility.

Influenced by persistent passive fund inflows, the largest Chinese stock ETF listed in the U.S. has surpassed $10 billion, reaching an impressive $10.86 billion. This marks the first time a U.S.-listed Chinese ETF has crossed the $10 billion threshold.

According to reports from various financial news outlets, including 21st Century Business Herald and China Fund News, as of October 11, the net assets of the “iShares China Large-Cap ETF” (ticker symbol: FXI), listed on the New York Stock Exchange, have reached $10.86 billion.

Notably, during previous bull markets in Chinese stocks in 2015, 2019, and 2020, there were no records of any single U.S.-listed Chinese ETF breaching the $10 billion mark.

Public data indicates that FXI tracks the FTSE China 50 Index, which covers the largest and most liquid 50 stocks listed on the Hong Kong market. Its top holdings include Meituan at 10.69%, followed by significant positions in Alibaba, Tencent Holdings, JD.com, and China Construction Bank, with Xiaomi, Ping An, BYD, Bank of China, and Industrial and Commercial Bank of China also making the top ten.

Since the press conference held on September 24 by the three major financial regulators, FXI’s scale has surged dramatically. From September 23 to October 10, FXI saw a net inflow of $6.15 billion.

As of October 10, the largest Chinese stock ETFs listed in the U.S. include FXI (tracking the FTSE China 50 Index), KWEB (tracking the Chinese Internet Index), MCHI (tracking the MSCI China Index), ASHR (tracking the CSI 300 Index), and YINN (three times leveraged on the FTSE China 50 Index).

Brendan Ahern, Chief Investment Officer at KraneShares, the provider of the KWEB ETF, commented, “Historically, Chinese stocks have been underrepresented in global indices, and their valuations remain low compared to their global counterparts. With the Federal Reserve potentially lowering interest rates and the U.S. economy facing a recession, why not allocate some profits to invest in the more cost-effective Chinese market?”

However, there are differing opinions. Many observers were hoping the Chinese Ministry of Finance’s press conference on October 12 would unveil specific fiscal measures to stimulate the market. Yet, when no concrete expansionary spending figures were announced, analysts warned that A-shares might continue to experience volatility amid profit-taking pressures. Investors are also waiting for new stimulus measures from the authorities.