The China Securities Regulatory Commission has granted the establishment of the first Chinese cross-border exchange traded funds in a move that allows more institutions to take part in the growth of the world's second largest economy. 

The funds, the Harvest CSI 300 ETF and the Huatai-Pinebridge CSI 300 ETF, are run by Harvest Fund Management and Huatai-PineBridge Fund Management, respectively. Harvest is the Chinese fund management business of Deutsche Bank, while Huatai is part of PineBridge Investments.

ETFs, which are listed on exchanges and have expanded rapidly in recent years, are gaining investor attention worlwide because they are said to be more liquid than other types of passive fund products. According to the firms, the launch of the two new China-focused funds opens up opportunities for foreign and domestic investors to share in the country's growth. 

Prior to the launch, investors had to create combinations of ETFs in both the Shanghai and Shenzhen exchanges. The 300 ETF products enables exposure to both bourses through a single fund.