Caixin
May 12, 2021 07:06 PM
FINANCE

Shanghai, South Korean Bourses Move to Let Investors Trade in Each Other’s ETFs

What’s new: The Shanghai Stock Exchange and South Korea’s Korea Exchange have agreed to work on a program for investors from both sides to tap into each other’s markets through exchange-traded funds (ETF), according to a memorandum of understanding (MOU) that they signed on Tuesday.

The two sides will also promote cooperation on indexes and bond markets, the Shanghai bourse said in a statement (link in Chinese), citing the MOU.

The context: China launched a similar ETF cooperation program with Japan back in 2019. In January, the Shanghai bourse and Japan Exchange Group Inc. updated (link in Chinese) their ETF connect agreement to include more products.

Under the program, Chinese investors can trade in cross-border ETFs that invest in Japanese ETFs tracking Japan’s stock indexes, and it works the other way around.

The Shenzhen Stock Exchange has also signed an MOU (link in Chinese) with the Japanese group to push ahead with investment in cross-border ETFs.

Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and editor Joshua Dummer (joshuadummer@caixin.com)

Download our app to receive breaking news alerts and read the news on the go.

Get our weekly free Must-Read newsletter.

You've accessed an article available only to subscribers
VIEW OPTIONS
Share this article
Open WeChat and scan the QR code