Guotai Asset Management and The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) announced today that Guotai has executed an exclusive licensing agreement with NASDAQ OMX to use the NASDAQ-100 Index in the development of an exchange traded product in China. The announcement comes as demand for indexed overseas products in China is rapidly developing. Subject to regulatory approval, this NASDAQ-100 Index-linked product will be the first foreign index-linked financial product traded in China.
Domestic investors in China who wish to invest in foreign capital markets must do so through the Qualified Domestic Institutional Investor (QDII) program. The program, first announced in April 2006, is designed to allow certain institutions, subject to approval from the China Securities and Regulatory Commission, to offer funds which are invested in foreign securities.
