Chinese investors pick passive investing for long-term gains

Transparency, low commission fee, diversified indexes, low transaction costs are big attractions

Retail investors are increasingly choosing passive investing, preferring options like index funds that track global equity indexes over individual stocks, for yields from long-term growth of a market or a sector.

Experts said features of passive investing appear to appeal to retail investors. Transparency, diversified nature of indexes, low commission fee and low transaction costs make passive investing popular among Chinese investors, they said.