The Research About ETF's Development In China Security Market

ETF is an open fund which traces the movement of index and is traded in the stock exchange. Since its first appearance in America in 1993, it has been developed rapidly in the period of more than a decade. As for China security market, which has a history of more than ten years, the blankness of products has been the bottleneck of market development. In this situation, the product innovation is imperative. As a basic derivative security, ETF can be regarded as a breach of market to accumulate experience for more sophisticated product innovation. In this paper, we use comparative and positive methods to introduce a review of global history of ETF and conclude its successful international experience. This paper discusses the inevitable trend of introducing ETF in china security market, combing ETF's operation features, competitive advantages and also the problems in China security market in recent ten years. This paper places much more emphasis on the basic environment of introducing ETF in China security market. It discusses the feasibility of introducing ETF from the aspects of market situation, rules and regulations and the index system. In addition, it puts forward the countermeasures for the problems which might appear in the process of introducing ETF. Finally, this paper makes a brief analysis of the positive effect of ETF on the future evolvement of China security market.