Uncategorized • 27 July 2022

What Lies Ahead for China’s Cross-border ETF Links?

What Lies Ahead for China’s Cross-border ETF Links?

Strong demand for Exchange-Traded Funds (ETF) in Asia underlines the region’s growing role as a global ETF hub. There has been more active collaboration on additional guidance and rulemaking between different exchanges and jurisdictions to encourage ETF creation and investment in the region.

Earlier this year, Singapore’s exchange signed a memorandum of understanding (MOU) to establish an ETF link with the Shenzhen Stock Exchange (SZSE). This will allow eligible fund managers to offer ETFs in both markets and tap cross-border capital flows. However, the details are yet to be revealed.

Another new addition is the long-awaited “ETF Connect”, which finally arrived a few weeks ago. Subsequent to the announcement by the China Securities Regulatory Commission and the Securities and Futures Commission of Hong Kong. Such an arrangement offers mutual access to eligible ETFs by investors in mainland China and Hong Kong, providing more options to investors by expanding access to existing products in the ecosystem without having to buy underlying assets.

The addition of ETFs marks the second expansion of China’s stock connect schemes. The announcement comes a week after broadening the Shanghai-London Stock Connect scheme to include Shenzhen-listed companies, as well as capital markets in Germany and Switzerland.

These agreements will help facilitate cross-border investment by giving global investors more direct, efficient access to rapidly growing Asian markets. Such reforms also provide opportunities for international financial services firms to support investors and services across APAC. For those firms that already enjoy a presence in China and for those looking to enter the market this underlines the need for region and country-specific content. That is in addition to ensuring that corporate messaging is tailored to meet the needs of local customers.

Latest News
What Lies Ahead for China’s Cross-border ETF Links?
Read More
What Lies Ahead for China’s Cross-border ETF Links?
What Does the Cross-Boundary Wealth Management Connect Mean to Public Relations Professionals?
Read More
What Does the Cross-Boundary Wealth Management Connect Mean to Public Relations Professionals?
5 Things You Need To Know About WeChat In 2022
Read More
5 Things You Need To Know About WeChat In 2022
Is Asia the Hottest SPAC Hunting Ground?
Read More
Is Asia the Hottest SPAC Hunting Ground?
Making Multi-Market Public Relations Work for Your Business
Read More
Making Multi-Market Public Relations Work for Your Business
What does de-listing in the U.S. and relisting in China mean for investors and businesses?
Read More
What does de-listing in the U.S. and relisting in China mean for investors and businesses?
Global Divergence on ESG Metrics Poses Challenges to Financial Institutions
Read More
Global Divergence on ESG Metrics Poses Challenges to Financial Institutions
Montieth SPRG hires a new Director for the APAC region
Read More
Montieth SPRG hires a new Director for the APAC region
Going truly global?

How Chinese listings and exchanges are thriving and what this means for investor relations professionals

Read More
Going truly global?
Montieth SPRG Launches

This week saw Montieth SPRG launch operations in Hong Kong to serve the Asia-Pacific region.

Read More
Montieth SPRG Launches
Icon