On August 20, the launch of the Dongfang Hong CSI Cloud Computing 50 ETF officially commenced, marking the debut exchange-traded fund product from Dongfang Hong Asset Management. This move signals the firm, long recognized for its strength in active equity investing, formally stepping into the ETF arena.
However, Dongfang Hong Asset Management is not alone in this transition. Since the start of 2025, a wave of public fund institutions that have traditionally focused on active management and rarely ventured into passive investing has begun to fill out their ETF business portfolios at their own pace. Industry insiders suggest that for these active-oriented managers, entering the ETF space does not represent a shift in investment philosophy but rather an extension of their client service approach.
Public filings show that the Dongfang Hong CSI Cloud Computing 50 ETF has set a cash fundraising cap of 1 billion yuan, with Yang Keren appointed as the proposed fund manager. The product tracks the CSI Cloud Computing 50 Index, concentrating on cloud computing services and related hardware sectors. A representative from Dongfang Hong Asset Management explained that during a window when competition among thematic ETFs tracking this index has yet to fully consolidate, and as capital appears to be rotating from broad-based indices toward industry themes, the firm is leveraging its own strengths to enter through niche segments. This differentiation strategy not only reduces homogeneity but also enriches the market's product diversity and investor toolkits. Through this approach, the company aims to refine its multi-tiered index product ecosystem while pursuing steady and diversified business growth.
The entry of Dongfang Hong Asset Management reflects a broader trend among active fund managers aggressively building out their ETF offerings. Since 2025, several institutions with little or no prior ETF issuance history have begun taking action. For instance, last September, Xingzheng Global Fund, known for its long-standing focus on active equity investment, filed for its first ETF product, the 300 Quality ETF Xingquan. Around the same period, Bank of Communications Schroders Fund restarted its ETF product line by filing for the HS Science and Technology 50 ETF BoCom, following a gap since its only two ETFs were established in 2009 and 2011, respectively.
Entering 2026, more institutions have followed suit. ABC-CA Fund Management submitted its first ETF application in May for the ABC CSI 300 Quality ETF, while on August 4, Zhong Ou Asset Management filed materials for its inaugural ETF, the Zhong Ou CSI Robotics ETF. These filings underscore the accelerating pace of participation.
According to insiders at Dongfang Hong Asset Management, for public fund institutions, building an ETF business is both a strategic necessity to complete their product lineups and a way to broaden and deepen client engagement through passive tools. Moreover, as innovative product pipelines take shape, ETFs have become an essential entry ticket for institutions competing in the next phase of product development, laying the groundwork for exploring diversified strategies and additional innovation initiatives.
As more active-investing-focused fund managers expand into ETF operations, the participant base and competitive dynamics of the public ETF market are becoming increasingly multifaceted. As the representative from Dongfang Hong Asset Management noted, in an era of global index-investing momentum and profound capital market transformation, establishing an ETF presence may no longer be optional for institutions, but rather a mandatory requirement for those seeking to remain competitive in the future.