Stock exchanges in Shanghai and South Korea have agreed to establish a cross-border exchange traded fund link that will allow ETF providers to sell their products directly to investors in the other market.
Cai Jianchun, general manager of the Shanghai Stock Exchange, and Sohn Byungdoo, chair and chief executive of the Korea Exchange, signed a memorandum of understanding via a video link last week.
“The demand for overseas investment has driven in-depth co-operation between China and South Korea’s capital market industries,” the Shanghai Stock Exchange said in the announcement.
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