China is launching its first ETF fund tracking overseas stock indexes, it has been revealed.
China is launching its first ETF fund tracking overseas stock indexes, it has been revealed.
The Shanghai Stock Exchange has taken the move in order to improve its connection to overseas markets.
Organisation president Zhang Yujun announced that the ETF fund will track H-share firms – companies that have incorporated in China but are listed on the Hong Kong’s bourses.
In a collaboration between the two exchanges, they announced that they will extend their cooperation to the development of ETF funds on bonds and gold.
“Besides ETFs, the two organisations may seek further co-operation in products such as securitised assets, warrants, callable bull/bear contracts and options,” Mr Yujun added in a statement.
City Index market strategist Joshua Raymond recently announced that Chinese growth figures have impacted on the mining and banking sector.
He stated that this and proposed regulations of risk taking are likely to dampen the global recovery’s speed.
