Hong Kong’s exchange-traded fund market kicked off a quarter-century ago with the listing of the Tracker Fund, and it is now “one of the most dynamic and innovative ETF marketplaces” in China, according to a top executive of the local bourse.
Wilfred Yiu, deputy chief executive officer of the Hong Kong Exchanges and Clearing (HKEX), made the observation in his opening speech at an ETF summit held by the bourse on November 5 to mark the 25th anniversary.
He pointed out that the Tracker Fund made its debut in 1999 when Asia was still recovering from the financial crisis that roiled the region, but that the listing turned out to be the largest in Asia outside of Japan, raising HK$33.3 billion (US$4.26 billion) from more than180,000 retail investors and institutions.
The fund bowed in on the Hong Kong exchange on November 12, 1999 and is now worth around HK$151.65 billion.
“Some 25 years on from the listing of our very first ETF, Hong Kong has become one of the most dynamic and innovative ETF marketplaces in the nation,” Yiu said.
He highlighted a number of major milestones achieved, including the debut last month of the city’s first Saudi Arabian stock ETFs, and the launch in 2022 of ETF Connect, a cross-border link that allows investors in Hong Kong and China to trade funds listed in each other’s markets.
According to Yiu, ETF Connect has seen “a very steady growth trajectory” with more funds being included in the scheme.
HKEX figures show that average daily turnover of ETFs this year as of November 5 was HK$13 billion, 10% higher than the average for all of 2023 and 32% more than in 2022.
