Exchange traded funds might sound like an unlikely way to improve harmony between rival nations but China and Japan have agreed to co-operate on a new ETF scheme designed to strengthen the links between both countries’ capital markets.
The China-Japan ETF Connectivity Scheme was launched at twin ceremonies in June by senior executives from the Shanghai and Tokyo stock exchanges, marking the culmination of 10 months of discussions.
The scheme is designed to make it easier for investors based in mainland China to have efficient low cost access to Japan’s stock market and vice versa. This will be facilitated through the listing of four Japan “feeder” ETFs on the Shanghai Stock Exchange and four China “feeder” ETFs on the Tokyo exchange.