CNBC’s The China Connection newsletter: Wall Street dips in again. What needs to go right

Franklin Templeton and ChinaAMC have agreed to share market insights and develop investment products, as international and Chinese investors seek access to each other’s markets. The partnership reflects renewed interest in Chinese technology, but comes amid a difficult year for Chinese shares and past setbacks for foreign financial firms operating in China.

The firms are developing co-branded exchange-traded funds for Hong Kong, US and European markets. A Hong Kong-listed fund launched in September holds about 40% US stocks and 60% Hong Kong-listed stocks; ChinaAMC’s Sherrie Dai said similar products might qualify mainland investors to participate within six to 12 months. Franklin Templeton manages $1.8 trillion, while ChinaAMC oversees more than 3.1 trillion yuan ($462.5 billion). The article also cites BlackRock’s closure of a China innovation fund with $31.7 million in assets and Vanguard’s sale of its stake in a mainland fund operator, with one adviser blaming foreign firms’ difficulties partly on headquarters’ micromanagement.