China, Japan to Expand Exchange-Traded Fund Connect Scheme
Xu Wei
DATE:  Jan 26 2021
/ SOURCE:  Yicai
China, Japan to Expand Exchange-Traded Fund Connect Scheme China, Japan to Expand Exchange-Traded Fund Connect Scheme

(Yicai Global) Jan. 26 -- The main bourses in China and Japan will extend their offerings on the China-Japan Exchange-Traded Fund Connectivity program, first launched 18 months ago, to further promote cross-border investment between the two nations, the Shanghai Securities News reported yesterday.

Japan Exchange Group, operator of the Tokyo Stock Exchange and the Osaka Securities Exchange, Shanghai Stock Exchange and Shenzhen Stock Exchange will increase the line-up of ETFs, which are baskets of securities traded on an exchange, available for trading on the connectivity program and provide more diversified cross-border investment options for investors in the two countries, according to memorandums of understanding signed between the three parties at the second China-Japan Capital Markets Forum yesterday.

“Moving forward, we will continue to invigorate the Japan-China ETF Connectivity scheme and cross-border trading between our two countries as we work with our counterparts in Shanghai and Shenzhen to further develop the capital markets of both countries,” said JPX Group Chief Executive Officer Kiyota Akira.

The Shenzhen stock market and JPX will continue to give play to the spirit of win-win cooperation and explore exchanges in the fields of science and innovation, real estate investment trusts and sustainable finance, the bourse said.

The move will further open up China’s capital markets to the world and follows the establishment of existing global connect schemes between the Shanghai and London stock markets, as well as the Shanghai-Hong Kong and Shenzhen-Hong Kong stock links.

Editor: Kim Taylor

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Keywords:   Japan,Shanghai,Shenzhen,Shenzhen Stock Exchange,Shanghai Stock Exchange,Japan Exchange Group