BlackRock, JPMorgan Lift Taiwan's Soaring ETF Assets to Record

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00:00Walk us through what it is about ETFs that Taiwanese investors are so enamored of.

00:04So Eric just had his first trip to mainland China a few weeks ago, including Taiwan.

00:09So we were very excited that he went to Taiwan, Hong Kong, Shenzhen, Shanghai and Beijing.

00:13But Taiwan is exciting because one, it just surpassed Australia in terms of assets under management.

00:17So as you said, it now ranks third, 230 billion in assets under management.

00:21But what's it, 230 million, not billion.

00:24But what's exciting is that around 60% of the population uses ETFs there.

00:29And so that's very high.

00:30I think Eric was saying it's one of the highest globally for any region in the market.

00:34But in Taiwan, we've just had BlackRock and JP Morgan launch their first ever ETF in Taiwan.

00:39So it's very exciting for them.

00:42BlackRock has launched their S&P 500 Select 50 ETF.

00:46And this was the first for many.

00:48JP Morgan launched their Taiwan U.S. tech.

00:52So ultimately still very U.S. focused.

00:53But something to note about Taiwan is that they only just approved active ETFs last year.

00:58And so this is the first time that they're launching.

01:01And so the first launches came this year.

01:03But we are seeing a lot of more international players come to Taiwan.

01:07So we have Allianz.

01:08We have ARK.

01:08We have a lot of other players that are doing this.

01:11So ultimately, Taiwan's a big market.

01:13Their population uses ETFs, so 60%.

01:15They're very focused on the market.

01:17And they're very developed.

01:18A lot of their investors are very sophisticated.

01:20So issuers coming in in a big way.

01:22And you mentioned, of course, Eric's first trip.

01:24I mean, that has to be a signal of something.

01:26Yeah.

01:27First of all, she was a great host.

01:30And we went and saw a lot of different people.

01:33But the exchange, I think we have a picture we can show here.

01:35The Shenzhen Exchange.

01:37This is interesting because this is Rebecca, Jack, and I at the Shenzhen Exchange, which is sort of the NASDAQ of China.

01:43One thing that was interesting to me is China has the most assets of any country there now, having passed Japan.

01:49And they did it without Vanguard, without Bitcoin, and without any of the Dijen leverage stuff.

01:55So that's pretty strong because if they had any of those, look out.

01:58And I just wanted to ask you about China and how much runway they have, especially with their government buying ETFs.

02:03So if we look at the China market, it's very interesting because just in 2021, in terms of flows, they only had $4 billion.

02:11Now, in 2024, they had $160 billion.

02:15So the flow has more than doubled.

02:17Think of it, $4 billion to now $160 billion.

02:20So ultimately, one, they do have the national team that's supporting the market.

02:23But China has also just surpassed Japan in terms of assets under management.

02:27China now ranks number one.

02:28And so this happened earlier.

02:30It happened over the summer.

02:31And when this happened, this was a huge thing.

02:33Ultimately, China is now doing what Bank of Japan did, and they're using ETFs to prop up the market.

02:38And this has been very beneficial for the market, ultimately.

02:41This is the first time ever that the government has said we're going to use ETFs to support the markets.

02:45And because of that, it's helped ETFs rally in terms of launches.

02:49China is at a record number of launches.

02:51You know, Katie, you mentioned Europe is close to 300.

02:53But in Asia Pacific, we're going to reach almost 700 by year end.

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