(Bloomberg) -- The Chinese equity market’s rebound from its January lows has done little to curtail its exclusion from several new developing market equity funds.

Fifteen emerging-market excluding China equity funds have already been launched this year as of June 14, according to data compiled by Bloomberg. That’s just four less than the annual record last year.

The latest funds offered include those from the world’s largest asset manager BlackRock Inc., Sydney-based First Sentier Investors and Thailand-based Tisco Asset management Co.

Read: China Is Being Left Out by a Record Number of New EM Stock Funds

The high number of EM stock funds launched that exclude China underscores persistent concerns about the country’s unique policy and geopolitical risks. Investors remain wary even though stocks have recouped some of the trillions of dollars lost since 2023 and valuations are low.

Although MSCI Inc. introduced its EM ex-China index in 2017, the strategy to exclude Asia’s largest economy gained prominence over the last three years following Beijing’s severe Covid restrictions and lackluster economic recovery.

Total assets held in the iShares MSCI Emerging Markets ex-China exchange traded fund have swelled to about $13.7 billion from a meager $164 million at the end of 2020. In comparison, the market value of the iShares MSCI China ETF decreased by 15% to around $5.6 billion over the same period.  

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