China, HK regulators approve first products under ETF cross-listing system

Credit: REUTERS/TYRONE SIU

Financial regulators in Hong Kong and mainland China have authorised the first exchange-traded Funds (ETFs) under a new cross listing arrangement, a statement from Hong Kong's Securities and Futures Commission said on Friday.

HONG KONG, Aug 28 (Reuters) - Financial regulators in Hong Kong and mainland China have authorised the first exchange-traded Funds (ETFs) under a new cross listing arrangement, a statement from Hong Kong's Securities and Futures Commission said on Friday.

The new arrangement will allow mainland China investors to trade ETFs listed in Hong Kong, and international investors to trade mainland China-listed ETFs.

It is the latest of a series of schemes linking the two markets, the most significant of which are the "Stock Connects" linking mainland and Hong Kong stock exchanges.

Friday's statement said that the SFC had approved two Hong Kong ETFs which will each invest at least 90% of their assets in a Shenzhen-listed ETF.

The China Securities Regulatory Commission has also approved two Shenzhen-listed ETFs which will each invest in Hong Kong listed ETFs.

The statement did not name the products.

(Reporting by Alun John; editing by David Evans)

((Alun.John@thomsonreuters.com; +852-28415827;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More