Framework
The ETF connectivity scheme is based on the feeder fund structure. An ETF provider develops a feeder ETF that invests the major proportion of its assets in a target ETF. Under the ETF connectivity scheme, the target ETF is normally listed on the exchange of other jurisdictions.
The scheme aims to increase cross-border investment opportunities for Chinese Mainland and overseas investors by linking ETFs listed on mutual exchange markets.
China-Japan ETF Connectivity
On April 22, 2019, Shanghai Stock Exchange (SSE) and Japan Exchange Group (JPX) agreed to establish China-Japan ETF Connectivity. Aimed at creating more opportunities for cross-border securities investment between China and Japan, the scheme enables listing of feeder ETFs of ETFs investing in Chinese or Japanese assets.
Along with QDII investment quotas specially allocated for the scheme, ETFs listed based on China-Japan ETF Connectivity will create a link between the ETF markets of both exchanges.
Through this scheme, investors in Japan will be able to indirectly invest in Chinese assets through feeder ETFs of SSE-listed ETFs listed on Tokyo Stock Exchange (TSE). Similarly, feeder ETFs of TSE-listed ETFs in Shanghai will allow Chinese investors to indirectly invest in Japan.
On June 25, 2019, the SSE and JPX held the launch ceremonies for the China-Japan ETF Connectivity respectively, with four SSE-JPX ETF Connectivity products successfully listed on the SSE.
On January 25, 2021, the SSE and JPX signed the revised China-Japan ETF Connectivity Agreement, which laid the foundation for the China-Japan ETF Connectivity mechanism to further expand the scale of products, increase the product types and broaden the scope of interconnection.
On April 8, 2021, the second batch of ETFs under China-Japan ETF Connectivity were launched on the JPX, including an ETF tracking an index of 50 stocks on the SSE STAR Market (STAR50).
22 April, 2019 China-Japan Capital Markets Forum Held in Shanghai
SSE and JPX Ink Revised China-Japan ETF Connectivity Agreement
Shanghai-HongKong ETF Connectivity
On June 1 2021, the first pair of Shanghai-Hong Kong ETF Connectivity products were listed on SSE and HKEX.
Shanghai-Singapore ETF Connectivity
On December 1, 2023, the first pair of SSE-SGX ETF Connectivity products were concurrently listed on both exchanges.
On March 2024, the second batch of SSE-SGX ETF Connectivity product was listed on SGX.
ETFs Listed
ETFs listed on SSE under this scheme are as below.
Index | Code | Fund Name | Management Company |
---|---|---|---|
Nikkei 225 | 513000 | E Fund Nikko NKY ETF | E Fund Management |
Nikkei 225 | 513520 | ChinaAMC Nomura NKY ETF | China Asset Management |
Nikkei 225 | 513880 | HuaAn MAXIS NKY ETF | HuaAn Fund Management |
TOPIX | 513800 | China Southern TOPIX ETF | China Southern Asset Management |
HSTECH | 513130 | Hang Seng TECH ETF | Huatai-PineBridge Fund Management |
ASIATECT | 513730 | iEdge Southeast Asia+ TECH Index ETF | Huatai-PineBridge Fund Management |
To view ETFs listed on the Tokyo Stock Exchange under this scheme, please visit:
https://www.jpx.co.jp/english/equities/products/etfs/etf-connectivity/01.html