At the International Investor Conference of the Shanghai Stock Exchange held on November 12, Guo Zhongbao, Head of Overseas Institutional Sales at Guotai Haitong Securities, highlighted the growing interest of foreign investors in China's ETF market. He noted that foreign participation in the latest China-Hong Kong cross-listed ETFs has reached nearly 40%.
Guo observed that foreign investment behavior is shifting from simple holdings to diversified trading strategies, with increasing activity in primary market subscriptions, redemptions, and cross-border operations. This trend reflects the growing diversification and openness of the ETF market structure.
To drive trading innovation, Guo proposed three key improvements: 1. Introducing leveraged and inverse ETFs at the product level to enhance flexibility and liquidity. 2. Expanding derivative instruments to provide more hedging tools for neutral strategy investors. 3. Exploring intraday block trading and optimizing T+0 trading mechanisms while increasing transparency in trading rules.
Guo emphasized that these measures would attract more international institutions to participate in China's capital markets, fostering greater internationalization and maturity of the ETF ecosystem.