Zhongyuan Securities' Deng Shubin: Active ETFs Mark an Upgrade in Long-Term Capital Entry, Forming Two-Way Support with Buybacks and Increased Holdings

On October 19, Wu Qing, Chairman of the China Securities Regulatory Commission, delivered a keynote speech at the opening ceremony of the 2026 Financial Street Forum Annual Conference, stating that the registration and approval of the first batch of 18 active ETFs is an important measure to promote the innovative development of fund products and will also bring more incremental capital into the market. Deng Shubin, Chief Economist of Central China Securities and Director of the Securities Research Institute, interpreted this as indicating that the launch of active ETFs marks an upgrade in the entry of medium- and long-term capital into the market from passive support via broad-based indices to "active management + transparent standardized vehicles." Deng Shubin stated that active ETFs combine the value-discovery capability of active stock selection with the advantages of ETF transparency, convenient subscription and redemption, and controllable costs, making them suitable for the allocation needs of medium- and long-term capital such as social security funds, insurance, and annuities, and making them a core product vehicle for the deployment of stable capital. The impact on bringing incremental capital into the market is reflected in at least two aspects: on the one hand, enriching the available tools for long-term capital and guiding long-term money to no longer be limited to broad-based indices, but to rely on professional active managers to identify high-quality listed companies; on the other hand, combined with listed company buybacks and increased holdings, forming a two-way support of "long-term capital allocation + listed companies rewarding shareholders," further expanding the group of stable market capital, optimizing the maturity structure of capital, and reducing market volatility caused by the dominance of short-term trading capital.