Hong Kong Exchanges and Clearing Limited (HKEX) today (Monday) celebrates the successful launch of the inclusion of ETFs in Stock Connect with a virtual market open ceremony.
The virtual event, viewed by market participants, welcomed speeches from representatives that include regulators, exchange operators as well as securities registration and clearing institutions in Hong Kong and Mainland China, and culminated with a gong-striking ceremony to mark the start of trading.
HKEX Chief Executive Officer, Nicolas Aguzin, said: “The inclusion of ETFs in Stock Connect is great news and continues our commitment to enhance the vibrancy, diversity and attractiveness of our markets. It will also further strengthen Hong Kong’s position as a superconnector between China and the world.”
“ETFs are one of the fastest-growing segments on Hong Kong’s markets. The inclusion of ETFs in Stock Connect signifies our ambition to enhance our ETF franchise, and reinforce Hong Kong’s position as Asia’s ETF marketplace,” Mr Aguzin added.
Hong Kong’s ETF market has one of the most diverse product offerings in Asia. As at the end of May 2022, the over 130 Hong Kong-listed ETFs traded over $11 billion a day, up from an average daily turnover (ADT) of $6.4 billion in 2020, with assets under management currently at over $430 billion. Adding eligible ETFs into Stock Connect will support the healthy development of ETFs in both the Hong Kong and Mainland China markets by expanding their respective investor bases.
Since its launch in 2014, the landmark Stock Connect programme has been instrumental in supporting the two-way capital flows into and out of Mainland China, and has become the preferred channel for international investors looking to access the A-share markets.
Stock Connect trading volumes performed well in the first quarter of 2022, with ADT of Northbound and Southbound trading at RMB105.9 billion and $35.5 billion respectively.
