Chinese Fund Manager to Create Products using FTSE/JSE
August 09, 2013
JOHANNESBURG, 8 August 2013. The Johannesburg Stock Exchange
(JSE) has signed a letter of intent for an index product licence with Chinese
fund manager GF Fund Management Co to create exchange traded funds (ETFs) based
on the FTSE/JSE Top40 Index.
The letter of intent, which signifies
closer ties between South Africa and China’s financial markets, was signed
during the inaugural South Africa China Market Forum held at the JSE today.
The FTSE/JSE Top40 Index, an index within the FTSE/JSE Africa Index
Series, consists of the 40 largest companies on the JSE by market
capitalisation. “We are very pleased to initiate this letter of intent which
will allow for the first direct launch of an exchange traded product in Asia.
This will give Chinese investors exposure to South African companies while
giving our companies exposure in a very important emerging market,” says Ana
Forssman, Director of Market Data at the JSE.
While this will enable the
creation of an ETF, Chinese investors can currently trade the FTSE/JSE Top 40
Derivative product in Hong Kong Dollars on the Hong Kong Future Exchange. This
is due to collaboration between the BRICS exchanges through the BRICSMART
alliance formed in 2011 which allows investors to trade BRICSMART products in
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