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Friday, January 22, 2010

China to launch foreign stock ETF

China has some innovative ways to diversify its huge foreign reserves. I am very happy to see China did not stop its reform in financial sectors in the aftermath of financial crisis, rather the pace has sped up.

The Shanghai Stock Exchange, in an effort to expand ties to overseas markets, will launch China's first exchange-traded fund tracking foreign stocks this year, SSE president Zhang Yujun said on Thursday. The announcement follows local media reports that the SSE will allow Chinese fund companies to develop global ETFs to track overseas indices such as the Dow Jones Industrial Average. It also comes amid expectations that Beijing will finally allow foreign companies to list in Shanghai this year.