China’s securities regulator is exploring expanding index-based investing by allowing fund firms to launch multi-asset exchange traded funds and other innovative index products.
The potential moves are part of China’s ongoing efforts to boost longer-term stock holdings and revive its capital markets, which in January included telling fund firms to increase their A-share holdings by at least 10 per cent annually over the next three years.
The China Securities Regulatory Commission has said in a statement that introducing multi-asset ETFs and other index products must be done “steadily and prudently”, on the premise that “risks are measurable and controllable and investors are effectively protected”.