China could open ETFs to US market makers

China could open its growing ETF business to US market makers as the country seeks experienced liquidity providers. I saidcite an anonymous source.

According to the news outlet, large market makers, including Jane Street Capital and Kengriffin’s Citadel Securities, are likely among the companies that tapped. Amsterdam-based Optiber could be one of the companies it aims to help China make its market more efficient.

The asset has tripled over the past two years, and its assets have skyrocketed, according to Reuters. China has been trying to develop its own market makers, but older companies such as New York-based Jane Street and Miami-based Citadel have the experience the country needs, sources told Reuters.

Market makers help smooth trading in stock trading by promoting transactions that run and sell stocks to ensure an efficient market among large banks and institutions. According to the Citadel website, it also helps reduce costs associated with transactions.

Still, the series of tariff series that the US and China have recently imposed on each other could undermine China’s enthusiasm for bringing in US companies, sources told Reuters.

The two companies recently took steps to boost China’s existence. Earlier this year, Citadel applied to start securities brokerage within the country and recently hired a former employee of the China Securities Regulation Authority to develop its business in the country. Jane Street plans to expand its Hong Kong offices and add 400 workers to a strong 400 workforce. I said Previously.

Neither of the companies cited nor the China Securities and Regulation Authority offered comment to Reuters.

At the same time, China is buying ETFs to support the market, Bloomberg reported. According to the press, $24 billion was invested in the market last week in ETFs, which are primarily supported by the country’s so-called national teams.

Source: ETF.com data

China-centric ETFs are growing today at $5.9 billion Kraneshares CSIS China InternetEtf (for b) 4.1% and a sharp rise of $5.6 billion Ishares Trust China Large-Cap ETF (modified) Added 2%. KWEB fell 15% last month, with investors withdrawing $1 billion from the fund last week.

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