THE Shenzhen Stock Exchange and the Singapore Exchange (SGX) have committed to setting up a cross-border link for exchange-traded funds (ETFs), the bourses said, a move designed to open up a wider range of investment options on both sides. Under a memorandum of understanding for the link, the two exchanges will jointly develop and promote ETF markets in Singapore and China through cross-border investments, the bourses said in separate statements late Tuesday. The memorandum of understanding represents the latest step by China to open its capital markets. Earlier this month, mainland and Hong Kong bourses agreed to add ETFs to their stock connect programs, and China’s securities regulator announced plans to broaden the Shanghai-London stock connect program to include capital markets in Germany and Switzerland. “The strong demand for ETFs in Asia underscores the region’s growing role as a global ETF hub and we are excited about the manifold opportunities that this partnership could bring,” Loh Boon Chye, CEO of SGX, said in the statement. Sha Yan, president and CEO of the Shenzhen exchange, said the agreement will provide investors in China and Singapore with diversified, cross-border opportunities. As of the end of November, Singapore-listed ETFs exceeded 12 billion Singapore dollars (US$8.86 billion) in assets, up nearly 50 percent from a year earlier, SGX said. The Shenzhen Stock Exchange currently lists 212 ETFs with a combined market capitalization of US$39 billion. (SD-Agencies) | 