Japan-China ETF Connectivity
On April 22, 2019, Japan Exchange Group (JPX) and Shanghai Stock Exchange agreed to establish Japan-China ETF Connectivity. Aimed at creating more opportunities for cross-border securities investment between Japan and China, the scheme enables listing of feeder ETFs of ETFs investing in Japanese or Chinese assets. On January 25, 2021, JPX and Shenzhen Stock Exchange agreed to establish a similar scheme.
Along with the investment quotas and other arrangements for the scheme, ETFs listed based on Japan-China ETF Connectivity creates a link between the ETF markets of both countries.
Through this scheme, investors in Japan are able to indirectly invest in Chinese assets through feeder ETFs of China-listed ETFs listed on Tokyo Stock Exchange (TSE). Similarly, feeder ETFs of TSE-listed ETFs in China allows Chinese investors to indirectly invest in Japan.
| Outline of Japan-China ETF Connectivity |  |
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