CSOP Asset Management has become the first Chinese manager to independently list an ETF in the US. The launch was months late because a shortage of RQFII quota forced it to readjust its investment policy.
The Shanghai and HK bourses are reportedly in talks over an alternative to SGX China A50 Index Futures, possibly after Stock Connect. Expectation is CSI300 will be the benchmark index.
CSOP Asset Management's head trader expects the planned Shanghai-Hong Kong trading link to attract greater volumes to the Shanghai Stock Exchange and reduce issues over liquidity.
The HK subsidiary is set to list offshore renminbi ETFs in Hong Kong and New York and is in talks with global partners. It is also seeking to double its staff in Hong Kong to 40.
Taking its cue from greater on-exchange activity in A-share ETFs, the bank has invested in a new market-making system for providing on-screen quotes to the retail segment.
The combination of anaemic ETF trading volumes and rising funding costs means market-makers need to find a niche to survive in Asia’s heavily brokered markets.