Shanghai exchange seeks permission for ETF

It hopes to launch China''s first exchange-traded fund by the end of this year, provided it can overcome several hurdles.

The Shanghai Stock Exchange has applied to the China Securities Regulatory Commission CSRC for approval to launch the nation's first exchange-traded fund. Exchange officials say they hope to launch an ETF based on its recent Shanghai180 Index by the end of this year.

The move is part of the exchange's broad programme to broaden its product offerings and increase trading volumes. It also hopes to attract foreign portfolio investors as part of China's emerging qualified foreign institutional investors scheme. Says one exchange official Foreign investors aren't familiar with Chinese stocks, and may want to invest in an ETF initially.

The exchange has been studying how an ETF might work in China...

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