Feb 15, 2012 04:13 PM

Cross Market ETF Applications Under Review


(Beijing) – China's securities regulator has started to review fund management companies to participate in the launch of a cross market exchange-traded fund (ETF), the first time after years of market speculation, according to a document released by the China Securities Regulatory Commission released February 14.

According to the CSRC, a review of two applications by Harvest Fund Management Co. and Huatai-Pinebridge Fund Management Co. for the launch of an ETF linked to the Shanghai Shenzhen CSI 300 Index opened February 6. The review is expected to be finished within six months.

ETF products of Harvest Fund Management will focus on Shanghai Stock Exchange while the Huatai-Pinebridge product will be linked closer to the Shenzhen market.

The CSI 300 index was launched in 2005 to replicate the performance of 300 stocks traded in the Shanghai and Shenzhen stock exchanges. "The CSI 300 index's performance is currently the best (in China), so the approval of cross market ETF will be a landmark for the fund market," said a senior executive in a Beijing-based fund company.

Meanwhile, the CSRC also accepted applications for the first cross boarder ETF submitted by E Fund Management Co. The product will track the Hang Seng China Enterprises Index and open another channel for mainland investors to invest in the Hong Kong market.


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