Japan-China ETF Connectivity

On April 22, 2019, Japan Exchange Group (JPX) and Shanghai Stock Exchange (SSE) 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.
Along with QFII/RQFII and QDII investment quotas newly allocated for the scheme, ETFs listed based on Japan-China ETF Connectivity will create a link between the ETF markets of both exchanges.
Through this scheme, investors in Japan will be able to indirectly invest in Chinese assets through feeder ETFs of SSE-listed ETFs listed on Tokyo Stock Exchange (TSE). Similarly, feeder ETFs of TSE-listed ETFs in Shanghai will allow Chinese investors to indirectly invest in Japan.

Outline of Japan-China ETF Connectivity icon-pdf