First ETF debuts to bullish prospects

Although China's first exchange-traded fund ended down on its debut this week mostly due to technical adjustments by institutional investors, dealers say the ETF has good long-term prospects. Launched by China Asset Management Co., with help from US-based State Street Corp., the Shanghai 50 ETF is an index-tracking mutual fund traded on the stock exchange. Since it mirrors the generally positive trend of solid blue chips, hopes are high that the ETF will outperform. China's ETF closed its subscription period in late December at an initial size of RMB5.44bn.