E Fund gets fancy with ETFs
15 March 2013
By Hui Ching-hoo
E Fund Management has reportedly received approval from China Securities Index Co (CSIC) and Shanghai Stock Exchange (SSE) to launch leveraged and inverse ETFs tracking the CSI 300 Leveraged Indices and CSI 300 Index Futures Indices.
The approval came shortly after CSIC launched the leveraged indices and futures indices, on March 11, so as to further enhance the CSI index family and provide new analysis tools and underlying instruments for investors. The indices are slated to launch on April 3.
The products provide a cost-efficient hedging option to investors using existing hedging instruments, such as index futures, margin trading and securities lending.
E Fund will now summit an application to the China Securities Regulatory Commission (CSRC). The ETF funds are expected to be rolled out fairly soon, the sources said.
Mainland ETF sponsors are pushing ahead with the development of innovative index funds. Guotai launched an ETF tracking the SSE five-year China Treasury Note Index earlier this month. It is the first bond ETF in China.
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