Hong Kong, Shanghai exchanges eye dual-listed ETFs

SHANGHAI, Jan 21 (Reuters) - Hong Kong and Shanghai bourses are working jointly to roll out dual-listed exchange-traded funds (ETF) and related derivatives as soon as this year, the chief executive of Hong Kong Exchanges & Clearing said on Wednesday.

"I don't think we're slowing innovation or development of derivative products," Paul Chow said at a ceremony in Shanghai, where the two exchanges signed an agreement to deepen their cooperation.

"We're studying ETF products that could be traded across the border," he told reporters, adding that derivatives under study include A-share related options and futures.

The Hong Kong exchange (0388.HK), Asia's biggest, the Singapore Exchange (SGXL.SI) and other bourses in the region are under pressure to attract traders back to the market, as the protracted global financial crisis saps demand for risk-taking and sidelines investors.

The Hong Kong exchange is expected to post a 56 percent slump in earnings in the fourth quarter of 2008, a Reuters poll of 14 analysts showed.

In 2002, the Hong Kong Exchange signed a partnership agreement with its Shanghai counterpart, initiating cooperation in areas including information exchange, training, and product development.

(Reporting by Samuel Shen, Editing by Jacqueline Wong)