Barclays Capital, the investment banking arm of Barclays Bank, is holding negotiations with several fund managers from China to develop cross-border exchange-traded funds (ETFs), which will be listed on the Shanghai stock exchange.
Shanghai Stock Exchange had approved Barclays Capital’s 19 fixed-income indexes, including the Barclays Capital Global Treasury Bond Index, which will will be used in ETF products developed by Chinese fund management firms, reported the Reuters.
Waqas Samad, head of index, portfolio and risk solutions of Barclays Capital, said: “The next step will be working with asset managers to develop the products, and we are in discussions with some local asset managers.
“The first Shanghai-listed fixed-income ETF based on Barclays’ indexes could be launched this year or early next year.”
In 2006, China launched the Qualified Domestic Institutional Investor (QDII) scheme, which permitted fund managers to invest their domestic client’s money in overseas markets. Regulators may soon also allow foreign firms to list in Shanghai, reported the news agency.