China is contemplating allowing Western companies, such as Citadel Securities and Jane Street, to operate as market makers in its rapidly expanding exchange-traded fund (ETF) sector, according to a Reuters report on Friday.
In the past two years, Chinese authorities have granted more licenses and promoted the growth of domestic market makers. However, international market makers have more experience in supplying liquidity to ETFs, which could enhance trading efficiency and reduce costs, the report added.
The report also warned that the intensifying trade conflict with the U.S., which has resulted in China facing tariffs of 145% this year, could postpone Beijing's official approval for U.S. firms.
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