More than a year after Shanghai and South Korea stock exchanges signed an agreement to cross list exchange traded funds, issuers in China and South Korea say there has been no progress, reports the Financial Times. They say there has been no movement on the regulatory front and investor appetite for prospective ETFs in the scheme has been questioned.
In principle, the new scheme allows South Korean and Chinese fund firms launching ETFs in Shanghai or Seoul to link a domestically listed ETF to one listed on the other exchange, connecting two of Asia’s fastest-growing ETF markets.
The largest ETF providers in both markets signed up for partnerships in the scheme, including China Asset Management, Mirae Asset Global Investments, and Samsung Asset Management and CCB Principal Asset Management, a fund joint venture between US financial corporation Principal and China Construction Bank.
