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The China Securities Regulatory Commission announced today (June 29) the approval for two fund management companies to launch exchange-traded funds (ETFs) constituted by Hong Kong-listed stocks on the Mainland. The Financial Secretary, Mr John C Tsang, welcomed the measure and said that it would allow Mainland investors to participate in the Hong Kong securities market indirectly, and further enhance interaction and links between the capital markets in Hong Kong and the Mainland.
Mr Tsang said, "The initiative not only puts into place Mainland ETFs constituted by Hong Kong-listed stocks as outlined in Supplement VI and Supplement VII of the Mainland and Hong Kong Closer Economic Partnership Arrangement, but also marks the implementation of one of the series of measures announced by Vice-Premier Li Keqiang in his visit to Hong Kong last August to support Hong Kong's financial development under the 12th Five-Year Plan."
Meanwhile, the Securities and Futures Commission in Hong Kong has authorised the first Renminbi ETF tracking an A-share index. The ETF will make use of the newly increased quota under the Renminbi Qualified Foreign Institutional Investors scheme (RQFII) to invest in A-shares tracking the performance of an A-share index. It will also be listed on the Hong Kong Stock Exchange. In addition to providing investors with indirect access to the Mainland stock market, an ETF tracking an A-share index will help promote the development of Renminbi investment products in Hong Kong and enhance fund flows between onshore and offshore liquidity.
"These initiatives fully show the Central Government's support in enhancing Hong Kong's status as an international financial centre as well as an offshore Renminbi business centre," Mr Tsang said.
Ends/Friday, June 29, 2012
Issued at HKT 17:24
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