New funds to open doors for yuan use

Mainland and Hong Kong stock exchanges on Monday introduced exchange-traded funds, or ETFs, that will track each other's main stock indexes in a step to strengthen ties between the two capital markets

China Asset Management Co Ltd, a fund manager, released an ETF that will track the benchmark Hang Seng index and will be traded on the Shenzhen Stock Exchange. And E Fund Management Co Ltd has a new ETF that will be traded on the Shanghai Stock Exchange. It will track the Hang Seng China Enterprises Index, which measures the performance of mainland companies listed in Hong Kong. Issuances of the two funds started on Monday, and the Bank of China is acting as a custodian in those arrangements.

Meanwhile, a mainland ETF tracking the Shanghai Shenzhen CSI 300 Index won approval from Hong Kong's Securities and Futures Commission to trade on the Hong Kong Stock Exchange.