Shanghai plans China's first ETF

Shanghai Stock Exchange (SSE) plans to launch an exchange-traded fund (ETF) on the SSE 180 index by the end of the year. The product would be the first ETF for China and is pending approval by the China Securities Regulatory Commission (CSRC).

The move forms part of the exchange's campaign to broaden its product offering and encourage foreign participation in China's markets. Speaking at FOW's Trade Mission to Shanghai in November (see also page 8), SSE executive vice president James Liu conceded that progress towards regulation to permit futures trading stock indices had been slower than hoped. The...