Same-day settlement allowed for SSE-listed ETFs
01 August 2013
News, Asia, China
By Hui Ching-hoo
The Shenzhen Stock Exchange (SSE) unveiled a set of new rules on July 29 to promote trading in equities and ETFs. The new regulations will be effective from August 5.
One of the key initiatives the bourse has laid down is the introduction of T-plus-zero trading for physical fixed income-linked ETFs, meaning investors can subscribe and redeem ETFs within the same day.
Chen Jianyu, Shenzhen Stock Exchange’s executive manager of fund management, told Asia Asset Management in an earlier interview that the bourse is pushing ahead with its ETF business by propping up market turnover and widening the scope of ETF products, noting that the T-plus-zero trading mechanism can bolster market liquidity.
According to figures from Hong Kong Exchanges and Clearing, SSE is the sixth largest ETF trading center in Asia (after bourses in Korea, Hong Kong, Shanghai, Osaka, and Tokyo) with total ETF turnover of US$10.02 billion in the first quarter this year.
Separately, new regulation has also lowered the threshold for block trading A-share equity funds from 500,000 shares to 300,000 shares.
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