China has completed preparatory work for launching exchange traded funds linked to Hong Kong-listed shares, Guo Shuqing, chair of the country’s securities regulator, said in an editorial published in the state-run China Securities Journal on Thursday.
Guo, who didn’t offer a timetable for the launch of ETFs linked to Hong Kong-listed shares, reiterated that China will push ahead with establishing a global commodity futures market domestically.
During a visit to Hong Kong in August, Chinese vice Premier Li Keqiang said China would allow ETFs linked to Hong Kong-listed shares to be traded in mainland China, but didn’t provide a time frame.
China will deepen reforms on its initial public offering mechanism with a focus on establishing full, comprehensive and accurate information disclosure, he added.
The regulator will improve the underwriting system for shares in order to enable the pricing of new shares to more closely reflect share issuers’ fundamentals, Guo said.
Individuals have complained that China’s existing IPO mechanism leads to inflated pricing. -By China Bureau
Category: Hong Kong