US investors have pulled $3.4 billion from China-focused exchange-traded funds over the past three months, marking the largest annual outflow ever recorded for the category. The withdrawals span major US-listed vehicles tracking mainland and broader Chinese indices, including BlackRock’s iShares MSCI China ETF (MCHI). Money isn’t just leaving China — it’s rotating into other emerging markets and domestic assets.
The numbers paint a bleak picture
Single-month redemptions from China ETFs have repeatedly topped $4 billion during the 2024-2025 period. In November 2024 alone, outflows hit $4.4 billion.
China’s domestic ETF market reported a record net redemption of 805 billion RMB, roughly $119 billion, during the first quarter of 2026. That was the first quarterly net outflow in a year, breaking a streak of steady inflows.
What this means for markets
