The Shenzhen Stock Exchange (SZSE) and China Securities Depository and Clearing Corporation have launched a testing phase to prepare for the listing of new exchange-traded funds (ETFs).
The testing period will let fund management companies undertake the technical work required to launch cross-market ETFs that cover instruments listed on the SZSE and the Shanghai Stock Exchange (SSE). Two previous technical tests were held in September 2010 and January 2011.
The exchange and China Securities Depositary and Clearing Corporation have been working with buy-side firm Harvest Fund Management to design and develop the cross-market ETF products scheme and relevant technical system to meet local market needs.
Local watchdog, the China Securities Regulatory Commission, accepted the application for the Harvest SSE-SZSE 300 ETF on 6 February and the Shenzhen bourse stated, “countdown for rolling out SZSE cross-market ETF has begun”.
To ease the rollout process, the SZSE and China Securities Depositary and Clearing Corporation will hold a training session on 24 February.