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Chinese ETF offers real choice says HK

Friday 19 August 2011 - by Will Henley

The Chinese government is to start an exchange traded fund linked to Hong Kong stocks in a bid to boost cross-border investments.

KC Chan, Hong Kong's financial secretary, speaking in a radio interview on Thursday, predicted the move would prove attractive to investors in the mainland.

"I think this offers a real choice for mainland investors who are interested in buying in the Hong Kong market through a means that is accessible to them in their own market," he said.

"In other words, we are putting Hong Kong stocks listed as an ETF on their own market, so that they have access to them in their market daily, day in, day out, while they are investing in Hong Kong stocks."

Chinese vice premier Li Keqiang announced the move on Wednesday. Under the scheme, China's securities regulator will approve fund management companies for the ETF offering.


It is seen as a means to boost Hong Kong's equity market and enable mainland firms to use the financial centre as a centre for raising capital. Some RMB20bn is to be set aside for qualifying Hong Kong companies to invest in mainland securities.


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