The China Securities Regulatory Commission accepted an application to bring to market the country’s first ETF linked to Hong Kong-listed shares, a clear step toward opening China’s economy and offering China’s investors access to overseas companies, according to a story in the Wall Street Journal.
The Feb. 1 approval is part of an effort to boost the country’s poorly performing stock market and to add fuel to Hong Kong’s slowing economy in hopes of making it a major global financial hub, the Journal said.
ETFs linked to Hong Kong-listed shares will be able to be traded in China. Also, changes are in the works to make it easier to trade offshore yuan in Hong Kong back into the mainland, reports the article.
For further details, go to the WSJ.com.