TOKYO — China-focused exchange-traded funds (ETFs) listed in Tokyo have gone on a dizzying bubble-like run over the past few weeks, driven by factors that disrupted the market’s normal price regulation functions.
The Tokyo Stock Exchange allows Japanese market players to invest indirectly in certain ETFs listed in Shanghai or Shenzhen through the Japan-China ETF Connectivity program. This framework uses Tokyo-listed “feeder” funds such as the One ETF Southern China A-Share CSI 500 from Asset Management One, which soared to 70,400 yen on Oct. 8 — 58 times its year-to-date low on Sept. 20.
