Hong Kong’s exchange-traded fund assets more than doubled over the past decade, thanks to a diverse lineup of products, according to a senior official of the city’s bourse.
ETF assets have now topped HK$650 billion (US$83.5 billion), surging 117% from HK$300 billion in 2015, while daily turnover of the funds on the Hong Kong stock market has jumped from HK$8.7 billion to HK$38 billion over the same period.
“This puts us among the top three most actively traded ETF markets globally. We’ve overtaken a number of the world’s most established ETF markets,” Brian Roberts, managing director and head of equities product development at the Hong Kong Exchanges and Clearing (HKEX), said at an ETF forum on October 21.
According to Roberts, “relentless pursuit of product innovation by ETF issuers” has been a key driver of the growth, citing as an example the launch of the first covered call ETF on the bourse last year.
“These ETFs are gaining traction as they enable investors to combine income with growth potential. This segment has grown to exceed $1 billion in assets under management,” he said. “Hong Kong has become the fastest growing covered call ETF market globally.”
He also pointed to the ETF Connect, a cross-border scheme where investors in Hong Kong and China can trade ETFs listed in each other’s markets, as another factor driving the growth.
He said southbound trading volumes – referring to trading of Shanghai and Shenzhen-listed ETFs by investors in Hong Kong – have risen nearly five-fold since 2022.
“The continuous expansion of the ETF Connect, along with our ongoing efforts to attract more overseas issuers and cross-listings, will continue to strengthen Hong Kong’s global reach,” Roberts said.
