Franklin FTSE China UCITS ETF Surpasses $2 Billion in Assets Under Management Amid Rising Investor Demand

Since January 2025, China Equity ETFs in Europe have attracted over US$3¹ billion in net inflows, underscoring investors’ growing interest in the region.

London, 16 October 2025 – Franklin Templeton,² a leading global investment firm with over US$1.6 trillion in assets under management, is pleased to announce that the Franklin FTSE China UCITS ETF³ has exceeded $2 billion in assets under management, reflecting a significant surge in client demand for exposure to China’s dynamic equity market.

This milestone comes as global investors increasingly recognize the opportunities presented by China’s evolving economy and resilient equity market. Despite periods of skepticism and geopolitical uncertainty, recent months have seen a marked turnaround in sentiment, with the Chinese equity market rebounding by approximately 50% since its low beginning of this year. China is once again on the radar for international investors, with its growth forecast holding steady at 4.8%, more than double the World Bank’s 2.3% global growth outlook, a level not seen in two decades outside of major crises.⁴ Increasing market openness and growing innovative strength are driving the trend toward high-quality export goods. Driven by an expanding middle class, this is creating additional growth in the high-end consumer goods sector.

Matthew Harrison, Head of Americas (ex-US), Europe & UK, Franklin Templeton, said: "Surpassing $2 billion in assets under management for our Franklin FTSE China UCITS ETF marks a significant milestone for our ETF business in the EMEA region. It reflects not only the strength of our single-country emerging market strategies, but also the growing confidence investors have in our ability to deliver targeted, cost-effective exposure to dynamic economies like China. This achievement underscores our commitment to innovation and client-centric solutions in the ETF space."

Caroline Baron, Head of EMEA ETF Distribution, added: “Recent market developments underscore a notable shift in investor sentiment toward China. Since we launched the Franklin FTSE China UCITS ETF in 2019, we have continued to attract strong interest in China from European investors, for both tactical and strategic allocation purposes, even during periods of considerable market challenge. Client feedback suggests that while investing in China may involve certain risks, remaining on the sidelines may pose an even greater one. Whatever the nearer future holds, we can all agree that China remains the world’s second-largest economy and continues to play a leading role in technological innovation and global growth.”

Dina Ting, Head of Global Index Portfolio Management, highlighted: “China’s recent market rebound – its strongest in four years – has pushed leading equity indices toward decade-high levels, underpinned by targeted stimulus and a broad rebound in consumer and business confidence. The shift signals renewed growth potential in the world’s second-largest economy. From a valuation perspective, China’s equity market stands out as attractive—it trades at a discount to developed markets based on forward price-to-earnings (P/E) ratios while maintaining positive earnings growth expectations. For investors, this combination offers growth at a reasonable price, especially relative to the higher multiples in the U.S. and other developed markets.”

Single-Country ETFs in Emerging Markets

Emerging markets are not a monolith. Each country has its own unique economic drivers, risks and opportunities. By investing in single-country strategies, investors can target specific growth stories and manage exposures more precisely. This approach allows for greater flexibility and the potential to benefit from local market dynamics that may be overlooked in broad emerging market indices.

About the Franklin FTSE China UCITS ETF

The Franklin FTSE China UCITS ETF provides investors with broad, diversified exposure to the Chinese equity market by tracking the FTSE China 30/18 Capped Index. By combining A-shares with foreign-listed securities, the ETF delivers comprehensive exposure to China’s equity landscape. The fund holds over 900 stocks across key sectors, including Consumer Discretionary, Communication Services, Financials, and Information Technology. As of September 2025, its top holdings feature leading names such as Tencent Holdings (Communication Services), Alibaba Group, Xiaomi Corporation, and PDD Holdings (all Consumer Discretionary), along with China Construction Bank (Financials). Collectively, these companies account for nearly 44% of the fund’s assets, offering access to China’s most influential growth drivers. With a total expense ratio (TER) of just 0.19%⁵, the Franklin FTSE China UCITS ETF offers a cost-effective way for investors to participate in China’s long-term growth story.

The portfolio management team consists of Dina Ting, Head of Global Index Portfolio Management, and Lorenzo Crosato, Head of EMEA Index Portfolio Management at Franklin Templeton. Together, they have 55 years of experience and manage Franklin Templeton's regional and single-country emerging market ETFs, among other strategies.

For a full list of Franklin Templeton’s Emerging Markets ETFs. Please visit Franklin Templeton ETFs | Franklin Templeton

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Contacts:

Oliver Trenk Sr. Regional Corporate Communications Manager Franklin Templeton Investments Mainzer Landstraße 16 60325 Frankfurt Tel: +49 69 27223-718 Email: [email protected]

Saira Khan Senior Corporate Communications Manager Franklin Templeton Investments Cannon Place, 78 Cannon Street London EC4N 6HL Tel: +44 20 7073 8644 Email: [email protected]

Notes to Editors:

This is a marketing communication. Please refer to the prospectus of the UCITS and to the KID before making any final investment decisions.

1. Morningstar Direct as of 31 August 2025
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3. Franklin FTSE China UCITS ETF is a sub-funds of the Franklin Templeton ICAV, an Irish Collective Asset-managed Vehicle, incorporated under the laws of Ireland.
4. Global Economic Prospects
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