The exchange traded fund business in Asia has seen new inflows of $5.5 billion plus, thanks to recent regulatory changes that have created an opening. This follows a $1.42 billion inflow of new assets seen in September for the Asian ETP industry, confirming the trend.
Debbie Fuhr, a partner at ETFGI, said regulatory changes in China in recent months had made it easier for both foreign investors seeking exposure to the country and domestic investors, reports Sarah Krouse for Dow Jones Newswires. [China ETFs: Wolrd Bank Cuts Growth Outlook for East Asia]
A major game changer allowed Hong Kong subsidiaries of mainland asset managers to launch products that offer investors access to mainland China ‘A’ shares. A-shares are renminbi-denominated shares that are traded on the Shanghai and Shenzen stock exchanges for mainland Chinese investors. The newly launched physical ETF products differ from many mainland products.[ETF Boom Predicted in Asia]
Another rule change gave equities the go-ahead to trade on multiple exchanges, instead of tied to just one, giving greater flexibility to equity funds. [ETF Market Heats Up in Asia]