The Shanghai Stock Exchange will create exchange-traded funds based on depositary indices maintained by BNY Mellon.
The Shanghai exchange, the primary stock exchange in the People's Republic of China, signed a memorandum of understanding with BNY Mellon, which provides asset management and securities services, that gives it the exclusive right to list ETFs on its exchange that uses the indices as a benchmark in mainland China.
"These companies, which trade exclusively in DR form outside of China, are often left out of many other major indices," Gregory Roath, head of Asia-Pacific for BNY Mellon's Depositary Receipts business.
BNY Mellon's Roath added: "An ETF product based on the DR Indices would enable Mainland Chinese investors to gain real exposure to foreign traded equities and allow them to trade these in Chinese renminbi on the principal Chinese exchange. Our DR Indices are an innovative and exciting product, and we are delighted to be leading the way in bringing them to the Chinese markets."
BNY Mellon has provided a wide range of indices based on depositary receipts, since 1998. The BNY Mellon American Depositary Receipt Index is, for instance, a real-time index used to track all American and global depositary receipts traded on the New York Stock Exchange, NYSE Amex and Nasdaq markets.
Altogether, BNY Mellon produces over 140 indices around the world.
BNY Mellon acts as depositary for more than 2,100 American and global depositary receipt programs, with companies from 67 countries.