China examines foreign ETF trades after Jane Street India probe

Core Insights - Chinese regulators are increasing scrutiny on foreign firms, particularly Jane Street, in the $859 billion ETF market to understand trading patterns following a crackdown in India [1][14] - Jane Street was the largest foreign ETF market maker in China as of June 30, accounting for less than 2% of overall ETF trading in mainland China [1][14] - UBS Group AG paused some trades from Jane Street via the QFI program as a precautionary measure, but this did not impact Jane Street's other strategies in China [2][7] Company-Specific Insights - Jane Street is conducting business as usual globally, including with UBS, despite the increased scrutiny [3][7] - The firm is currently involved in a legal case in India regarding market manipulation allegations, which has led to a temporary trading suspension [12][14] - Jane Street made approximately $4.3 billion from trading in India between January 2023 and March 2025, according to SEBI's interim order [15] Industry Insights - The ETF market in China has attracted some of the world's largest firms, but there is a lack of real-time data on their trading activities [8] - Foreign market makers can trade China ETFs through Stock Connect links, but their holdings through these channels are not publicly disclosed [11] - The increased scrutiny reflects China's sensitivity to stock market performance, which is heavily influenced by retail investors [8][14]