Regulators in China have begun licensing domestic funds to introduce new yuan-denominated ETFs in Hong Kong, Reuters reported Thursday.

The move would allow new offshore investors to use yuan to invest in mainland markets, according to the article.

Earlier this year, the first yuan-denominated gold exchange traded fund started trading in Hong Kong. It is managed by Hang Seng Bank. [First Yuan-Denominated Gold ETF Begins Trading]

Beijing is trying to kindle interest among overseas investors for putting their offshore yuan into the Chinese market, Reuters said. However, recently launched funds that buy Chinese bonds haven’t experienced significant inflows.

U.S. investors can invest in ETFs that target the Chinese yuan “Dim Sum” bond market. [ETF Chart of the Day: Dim Sum Bonds]

China is also trying to develop index-linked ETFs that would invest in Chinese equities, according to the report.

The Hong Kong Securities and Futures Commission has published strict criteria specifying that applicants seeking to launch new ETFs in Hong Kong must have prior experience operating ETFs in mainland China, the article said.

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