China approves first exchange-traded bond funds to boost debt market

SHANGHAI (REUTERS) - China has given the green light to the launch of the country's first exchange-traded bond funds, as Beijing moves to boost China's debt market by introducing low-cost, liquid products to a wider pool of investors.

Guotai Asset Management, partly owned by Italian insurer Assicurazioni Generali, and Shenzhen-based Bosera Funds have received regulatory approval to launch exchange-traded funds (ETFs) for bonds, the China Securities Regulatory Commission said late on Tuesday.

Guotai will launch an ETF tracking an index of five-year treasuries, while Bosera will launch an ETF tracking an index of corporate bonds.

Chinese investors typically trade bonds through the country's interbank market, which is closed to retail investors.