New York
US investors pouring money into Chinese exchange-traded funds are finding it comes at a price: surging volatility.
ETFs that track Chinese equities on mainland, Hong Kong and the US bourses have attracted US$1.1 billion in new money over the past month as the Shanghai Composite Index climbed to a seven-year high, according to data compiled by Bloomberg. The May inflows were second only to Japanese ETFs on American exchanges with the iShares China Large-Cap fund attracting US$732 million, the most since 2012 and the biggest inflow among the 45 securities focused on Chinese stocks.
Foreign buyers, who seek to profit from a continuation of China's world-beating rally, must navigate market...