Investor appetite for ETFs may take time to build up, Asian Investor reports. Subscription levels are low and trading volumes are diminishing as the Chinese are more into buying equity rather than index products, Xu Zhiyan, managing director of passive investment at Hua An Fund Management, said at a conference. Trading volumes of ETFs have shrunk in 2011 mostly due to unfavorable market conditions, Xu added. China is in the process of including ETFs as part of its margin trading and securities lending programme, allowing investors to short ETFs.

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