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On June 25, ceremonies were held in Tokyo and Shanghai to commemorate the launch of Japan-China ETF Connectivity, a scheme jointly developed by Japan Exchange Group (JPX) and Shanghai Stock Exchange (SSE). The ETFs created under the scheme were listed on the two markets on the same day.
In Tokyo, the Financial Services Agency and SSE joined many institutions involved in the Japanese and Chinese capital markets to celebrate the birth of the ETFs on Tokyo Stock Exchange (TSE).
While there have been Chinese equity ETFs listed in Tokyo, the ETFs listing in Shanghai today are the first to track Japanese equity indices in China, thus realizing the mutual listing of ETFs across the two markets.
On the SSE market, a China Southern Asset Management TOPIX ETF is joined by ETFs tracking the Nikkei Stock Price Average each managed by HuaAn Fund Management, China Asset Management, and E Fund Management. Investors in China can now use these ETFs to gain exposure to Japanese equities.
On the TSE market, a Mitsubishi UFJ Kokusai Asset Management ETF tracking the SSE 180 index and an Asset Management One ETF tracking the CSI 500 index have been listed to broaden the lineup of investment options in Japan.
During the ceremony in Tokyo, JPX Group CEO Akira Kiyota said, "I am pleased that we now have ETFs forming a two-way bridge between the capital markets of Japan and China. If we consider the sizes of these two capital markets, this may only be a small step today, but it is surely a significant step with immense potential for the future. Now that this long-awaited pipe is laid, we will work with market participants to grow and develop it into a strong and robust one. At JPX, we will continue to promote the use of ETFs based on this scheme and join hands with the industry to invigorate cross-border investment flows between Japan and China so as to contribute to the further development of the capital markets of both countries."
Ceremony in Tokyo
