Tag Archives: China Securities Regulatory Commission

Shanghai Stock Exchange to Launch Options Trading on SSE 50 ETF

January 14, 2015 MarketsMuse Staff Reporter Leave a comment

MarketsMuse update courtesy of AsiaAsset News

The Shanghai Stock Exchange (SSE) will unveil its first ETF option next month as a testing ground for the pilot stock option trading program in China.

The China Securities Regulatory Commission (CSRC) said it has authorized the SSE to launch the pilot program with an option based on the SSE 50 Index ETF as the debut product. It will land on the bourse on February 9. The index in question tracks the 50 largest and most representative stocks listed in Shanghai.

The Mainland’s securities watchdog said in a statement that stock options comprise of options based on individual equities and ETFs linked to share indices. “Individual stock options and ETF options are important types of options in international capital markets. They have a role to play in risk management which cannot be replaced by other financial vehicles,” the CSRC said. It added that turnover in options has reached a level similar to that in futures in recent years in terms of trade conducted on global exchanges, signaling a large demand for these products. Continue reading →

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Chinese-Flavored ETFs: Shanghai-Hong Kong Stock Connect

December 11, 2014 MarketsMuse Staff Reporter Leave a comment

MarketsMuse extends our thanks re: below extract, courtesy of AsianInvestor.net

China Asset Management and China Southern Asset Management are racing to list the first exchange-traded fund via the Shanghai-Hong Kong Stock Connect, after getting regulatory approval last week.
But this comes amid muted initial volumes for the trading link, leading to suggestions that the mainland securities regulator has encouraged the moves to help promote the scheme.

Classed as qualified domestic institutional investor (QDII) products, they will be cheaper and will have quicker settlement cycles than existing QDII ETFs. They will trade through Stock Connect until the cap is reached, then they can use QDII quota.

China Southern, the fifth biggest mainland fund house with assets under management of Rmb200 billion ($32.5 billion), got the green light from the China Securities Regulatory Commission (CSRC) on December 2. Approval came the following day for China AMC, the country’s second largest fund manager with Rmb348 billion.

Both firms plan to launch ETF products tracking Hong Kong’s Hang Seng Index using the southbound quotas of the Stock Connect trading link. China AMC’s new fund will join its existing Hang Seng ETF that buys Hong Kong equities via the QDII scheme, while this will be the first such fund for China Southern.
Each product will charge a 0.5% management fee and 0.1% custody fee; these are 25% lower than existing QDII equity ETFs. They will be classed as QDII funds. more

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China To Add ETF Options to Menu of Shanghai Exchange Listed Products

August 12, 2014 MarketsMuse Staff Reporter Leave a comment

Below extract courtesy of Futures & Options World Aug 11 article by William Mitting

ETF options could be launched in China as soon as this month as the country gears up for the full launch of options trading, a leading lawyer has said.

China is undergoing a widespread reform of its financial markets as it seeks to build Shanghai as a global financial centre and develop its capital markets.

The launch of options is seen as a key step in that development and the country’s main derivatives exchanges have been running mock trading since 2012.

Natasha Xie, a partner at the JunHe law firm and a key figure in the local derivatives market, said that some Chinese observers believe that ETF options could be launched this month.

In a recent press conference, Dang Ge, the press secretary of the China Securities Regulatory Commission, said that ETF options will be launched on the Shanghai Stock Exchange (SSE) imminently. Continue reading →