Chinese bourses are close to completing the preparation work for the country’s first cross-border exchange traded funds (ETFs) – the Harvest CSI300 ETF, Huatai-Pinebridge CSI ETF and its feeder funds.
The Shanghai stock exchange held a meeting with the China Securities Depository and Clearing Corporation, Huatai-Pinebridge, Harvest and securities brokerages earlier this week to discuss the trial trading for the cross border ETFs and its implementation timetable. Also, the Shenzhen Stock Exchange will begin testing the entire network on March 6, according to China’s Securities Times.
The cross-border ETFs aim to mirror the CSI 300 – a capitalisation-weighted stock market index designed to replicate the performance of 300 stocks traded in the Shanghai and Shenzhen stock exchanges.
The China Securities Regulatory Commission (CSRC) accepted four cross-border fund applications in early February. Apart from the ETFs issued by Harvest and Huatai-Pinebridge, there were two qualified domestic institutional investor (QDII) funds – the China AMC Hang Seng Index Fund and the E-Fund Hang Seng China Enterprises Index ETF.
