The growth trend is expected to continue based on the looser restrictions in China, and other developments in the region. For one, listing rules for ETFs in the Philippines have been approved. The use of derivative-linked ETFs has been approved for use in South Korea. Furthermore, Vanguard has launched its first ETF in Hong Kong. [Philippine ETF Gains on Credit Upgrade]
Programs launched in China such as the Renminbi Qualified Foreign Institutional Investor program that launched in December 2011 was followed up by a launch of four RQFII ETFs that track indices made up of Chinese equities. The looser restrictions that have been implemented will also encourage more providers to launch various ETFs in the Chinese market.
“ETFs are a liberalization and a democratization of fixed income markets for investors, providing liquid and transparent exposures in what had previously been a difficult asset class to access,” says Ms. Jane Leung, head of iShares Asia-Pacific.
Tisha Guerrero contributed to this article.