Shanghai Stock Exchange (SHSE) announced that it has entered into a memorandum of understanding (MOU) with Singapore Exchange (SGX) to establish a link for exchange-traded funds (ETFs) between two exchanges. SHSE and SGX are also aiming to jointly develop more ETF products available to investors on both markets via the link.

This is not the first time that SGX has collaborated with the Chinese stock exchange. In 2021, Shenzhen Stock Exchange (SZSE) entered into a similar MOU with SGX, and three ETFs were successfully listed under the link between SZSE and SGX in 2022.

According to the data reported by SGX, the daily turnover for Chinese equities ETFs in the first quarter of 2023 grew more than 50% following the launch of two ETF products via the link between SZSE and SGX. In light of the successful collaboration with SZSE, SGX further expanded this model to SHSE and expects to provide investors from two countries with a wider range of ETF products through a master-feeder fund model via the new link.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Ms Chloe Duan
K&L Gates
K&L Gates Center
210 Sixth Avenue
Pittsburgh
Pennsylvania
15222
UNITED STATES
Tel: 212536 3900
Fax: 212536 3901
E-mail: Sarah.Lamb@klgates.com
URL: www.klgates.com

© Mondaq Ltd, 2023 - Tel. +44 (0)20 8544 8300 - http://www.mondaq.com, source Business Briefing