China set to launch domestic bond ETFs
China is preparing to launch exchange traded funds (ETFs) tied to the domestic bond market, according to a report from Reuters published Tuesday (August 7).
Citing local media reports, Reuters said that Guotai Asset Management and Bosera Asset Management will likely be among the first firms to launch such funds. Bosera has already received preliminary approval from the Shanghai Stock Exchange to begin preparatory work.
Guotai Asset Management is preparing an ETF linked to government bonds, while Bosera is preparing an ETF linked to the corporate bond market.
China has been gradually opening up its capital markets and allowing its firms and exchanges to launch more financial products to meet growing investor appetite.
Regulators in June granted approved mutual listings of ETFs on both the Hong Kong and Mainland exchanges, while several China ETFs, tracking the Shanghai and Shenzhen-listed stocks, were also approved for launch in March.