The China Securities Regulatory Commission has approved two Hong Kong-focused ETFs for listing on the Shanghai and Shenzhen Stock Exchanges.
Date: July 6, 2012
The China Securities Regulatory Commission has approved two Hong Kong-focused ETFs for listing on the Shanghai and Shenzhen Stock Exchanges.
The ETFs will invest directly in Hong Kong-listed stocks, each tracking a Hong Kong stock index.
Said Eddy Fong, chairman of the Securities and Futures Commission (SFC):“Hong Kong Stock ETFs provide an alternative channel for mainland investors to participate in the Hong Kong securities market and further strengthen the co-operation between the mainland and Hong Kong capital markets.”
Meanwhile, the SFC has also authorised the world’s first Renminbi Qualified Foreign Institutional Investor (RQFII) A-share ETF for listing on the Stock Exchange of Hong Kong.
Through the RQFII investment quota granted by the mainland authorities, an RQFII A-share ETF seeks to track the performance of an A-Share index by channelling RMB raised outside mainland China to invest directly in a portfolio of A-shares, which replicates the performance of the underlying A-share index.
"RQFII A-share ETFs broaden the range of RMB investment products in Hong Kong, offering Hong Kong investors an alternative channel to invest in the A-share market,” said Alexa Lam, the SFC’s deputy chief executive officer and executive director of policy, China and investment products.
