New Progress Made in Two-way Opening with Successful Launch of SSE-JPX ETF Connectivity Scheme

On the morning of June 25, 2019, the Shanghai Stock Exchange (SSE) and the Japan Exchange Group (JPX) held the launch ceremonies for the China-Japan ETF Connectivity respectively, with four SSE-JPX ETF Connectivity products successfully listed on the SSE.

At the ceremony held at the SSE, Fang Xinghai, vice chairman of the China Securities Regulatory Commission (CSRC), delivered a speech via video link. Wu Qing, vice mayor of Shanghai, attended and addressed the ceremony. Jointly starting the plasma globe to announce the official launch of the China-Japan ETF Connectivity Scheme were Wu Qing, vice mayor of Shanghai, Huang Hongyuan, chairman of the SSE, Miyahara Koichiro, president and CEO of the Tokyo Stock Exchange (TSE) under the JPX, and Zhu Huan, deputy director of the CSRC International Cooperation Department. Jiang Feng, president of the SSE, and Miyahara Koichiro delivered speeches on behalf of the two exchanges, respectively.

Ten months of hard work has come into fruition. Witnessed by the attendees, the representatives of the four companies of E Fund, China Asset Management, China Southern Asset Management and HuaAn Funds and their respective Japanese partner asset management companies sounded the gong successively. Along with the silvery gong sounds, the first batch of four ETF connectivity products were listed and traded, including the E Fund-Nikko Asset Management Nikkei 225 ETF, the China Asset Management-Nomura Nikkei 225 ETF, the CSAM-Asset Management One TOPIX ETF and the HuaAn-MUFJ Nikkei 225 ETF (English name for reference only). Then, the SSE representative exchanged gifts with the representatives of the TSE and the four Chinese fund companies successively. Attending the launch ceremony were nearly 200 representatives from the CSRC, the State Administration of Foreign Exchange, Shanghai Municipal Finance Bureau, the JPX and more than 60 financial institutions, who witnessed another important moment in the two-way opening of China’s capital market.

On the same day, Toshihide Endo, Commissioner of the Financial Services Agency of Japan (JFSA), and Pan Xuexian, Chair of the SSE Supervisory Board, attended and addressed the ceremony at the JPX. There are 4 ETF connectivity products in Japan: NEXT FUNDS ChinaAMC SSE50 Index Exchange Traded Fund, Listed Index Fund China A Share (Panda) E Fund CSI300, MAXIS HuaAn China Equity (SSE 180 index) ETF, and One ETF Southern China A- Share CSI 500.

Since the initiation of the discussions on the SSE-JPX ETF Connectivity in August last year, the SSE and the JPX have, on the basis of carefully studying different modes of cooperation between the exchanges, finally formed the innovative business model by comprehensively considering the characteristics of the capital markets in China and Japan, the demands of cross-border investment and other factors, striving to give full play to the comparative advantages of the two capital markets, and adhering to the concept of joint development, mutual benefits and win-win results between the relevant institutions in the two countries. An SSE official said that the SSE-JPX ETF Connectivity is another important initiative to expand the pragmatic cooperation between China and Japan’s capital markets and make China’s capital market open wider to the outside world. The SSE-JPX ETF Connectivity is not only an important achievement in the cooperation between the capital markets in China and Japan, but also shows us the great potential for expanding the collaboration with overseas markets. Going forward, the SSE will continue to accelerate the pace of internationalization with the unified deployment and guidance of the CSRC, to strengthen the cooperation with overseas exchanges, to improve the international level of the Chinese market, and to promote the two-way opening up of China’s capital market.

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