What’s new: The Shanghai Stock Exchange and South Korea’s Korea Exchange have agreed to work on a program for investors from both sides to tap into each other’s markets through exchange-traded funds (ETF), according to a memorandum of understanding (MOU) that they signed on Tuesday.
The two sides will also promote cooperation on indexes and bond markets, the Shanghai bourse said in a statement (link in Chinese), citing the MOU.
The context: China launched a similar ETF cooperation program with Japan back in 2019. In January, the Shanghai bourse and Japan Exchange Group Inc. updated (link in Chinese) their ETF connect agreement to include more products.
Under the program, Chinese investors can trade in cross-border ETFs that invest in Japanese ETFs tracking Japan’s stock indexes, and it works the other way around.
The Shenzhen Stock Exchange has also signed an MOU (link in Chinese) with the Japanese group to push ahead with investment in cross-border ETFs.
Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and editor Joshua Dummer (joshuadummer@caixin.com)
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