China is getting ready to introduce its first all-mainland stock index and an exchange-traded fund to track it, according to Shanghai Daily.
The China Securities Index Co. announced the introduction of the CSI 300, an index of the 300 largest mainland “blue-chip” companies, according to the report.
The new ETF will be based on that index, the report said.
“The frenzy to develop such ETFs is high among Mainland fund managers and it won’t be long before the products debut,” the paper quotes the China Securities Index as saying.
Chinese authorities are expecting to launch stock-index-based futures contracts this year, despite several recent setbacks.
Mainland China now has 19 index funds. As of June, that represented a $16.3 billion market, according to the report.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.