Regulators vet mainland's first H-shares ETF

Chinese securities regulators are reviewing an application from E Fund Management Co, China’s third-largest asset management company, to launch the mainland’s first exchange-traded fund tracking the Hong Kong-listed shares of Chinese companies, Bloomberg reported. The fund, which will be linked to the Hang Seng China Enterprises Index, is expected to help bolster turnover, as a cooling economy and tightening money supply has brought stock trading in China to three-year lows. Plans to list Hong Kong ETFs had been submitted to the State Council and the China Securities Regulatory Commission before last month’s Lunar New Year holiday, an anonymous source said. The director of Hang Seng Indexes Co, Vincent Kwan, said in August that the company also plans to introduce an ETF linked to the Hang Seng Index.