On Jul. 4, SSE, SZSE revised guidelines on risk management of ETFs.
SSE and SZSE issued notices on amendments to their Self-regulatory ETF guidelines no. 4 - risk management of open-ended exchange traded funds (ETFs).
Highlights of Amendments
The amended guidelines require fund managers to strengthen the management of ETF subscription and redemption lists, by setting parameters for the two types of lists.
Internal control systems should be improved, emergency drill arrangements optimized.
Further clarified the risks associated with the reference net asset value of the fund, as well as the risk management requirements for member customers.
Requires members to improve management systems and processes such as establishing a mechanism for tracking and monitoring customer trading behavior.
Effectiveness
The amended guidelines will be effective from Aug. 1, 2025.
