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China: MOU of ETF Products Between China and Singapore Exchanges

Shanghai Stock Exchange (SHSE) announced that it has entered into a memorandum of understanding (MOU) with Singapore Exchange (SGX) to establish a link for exchange-traded funds (ETFs) between two exchanges. SHSE and SGX are also aiming to jointly develop more ETF products available to investors on both markets via the link.

This is not the first time that SGX has collaborated with the Chinese stock exchange. In 2021, Shenzhen Stock Exchange (SZSE) entered into a similar MOU with SGX, and three ETFs were successfully listed under the link between SZSE and SGX in 2022.

According to the data reported by SGX, the daily turnover for Chinese equities ETFs in the first quarter of 2023 grew more than 50% following the launch of two ETF products via the link between SZSE and SGX. In light of the successful collaboration with SZSE, SGX further expanded this model to SHSE and expects to provide investors from two countries with a wider range of ETF products through a master-feeder fund model via the new link.

Copyright 2023 K & L GatesNational Law Review, Volume XIII, Number 151

About this Author

Chloe Duan Attorney Finance KL Gates China

Chloe Duan is a partner in the firm's Shanghai office.

Her practice focuses on investment management, venture capital investment, and cross-border M&A. Since 2007, Chloe has advised numerous renowned international financial institutions, unicorns and high technology companies on their cross-border investments.

Chloe is a dual New York/PRC qualified lawyer with experience working in PRC law firms and international law firms.

Grace Ye Shanghai Corporate Transactions Attorney KL Gates

Grace Ye is an associate at K&L Gates' Shanghai office. She is a member of the Mergers and Acquisitions practice group.

Prior to joining the firm Grace practiced in various international law firms advising multinational clients on mergers and acquisitions, joint ventures, foreign direct investments, and general corporate matters, as well as advising Chinese clients on setting up offshore investment funds. Grace also served as the director of strategic development for a technology start-up company in Shanghai. Through this role, Grace led...