China, Japan ink pact on ETF investments

Chinese investors will have more access to the Japanese exchange-traded fund market thanks to the recently signed agreement for a China-Japan ETF Connect mechanism, which is another major step forward of the further opening-up of China's financial market, experts said.

The Shanghai Stock Exchange and Japan Securities Group signed an agreement on Monday to allow cross-listing of ETF products in the bourses of both countries. Qualified institutional investors in the two countries will be allowed to set up cross-border funds to invest in the ETF products in either nation. The agreement was signed during the first Sino-Japanese capital market forum held in Shanghai on Monday.

Yi Huiman, chairman of China Securities Regulatory Commission, said at the signing ceremony that the ETF Connect will help enrich China's cross-border public fund product system and help investors of both countries to seek opportunities in each other's market.