China has announced new measures for the "high-quality" development of index investment products, which play an important role in optimizing market resource allocation and promoting listing, in Beijing's latest move to support the ailing equity market.

The government aims to promote the scale and proportion of indexed investment in the capital market by strengthening the asset allocation function of index funds and providing a more convenient channel for medium- and long-term funds to enter the market, the China Securities Regulatory Commission announced.

The regulator will promote active development of broad-based stock ETFs and bond ETFs, with the aim of enhancing the diversity of ETF products and attracting foreign funds to invest in the A-share market through ETFs. 

The CSRC will establish a quick registration mechanism for stock ETFs, waive annual ETF listing fees, reduce index funds’ costs, and strengthen supervision and risk prevention.

Last week, Beijing announced measures to encourage state-owned funds and insurers to buy more shares and prop up the stock market, amid ongoing concerns of Trump imposing tariffs on Chinese goods soon.