Two more Hong Kong-listed technology exchange-traded funds have been cleared for sale to investors in China via the southbound channel of the ETF Connect.
Regulators in China approved the GLOBAL X Hang Seng Tech ETF and ChinaAMC Hang Seng Tech ETF, and the funds began trading on the Shenzhen and Shanghai stock exchanges on November 6, joining six other southbound ETFs.
The bourses made the announced in a statement on October 27. The Hong Kong exchange uploaded the statement to its official LinkedIn on November 6.
Launched in July 2022, the ETF Connect allows investors in Hong Kong and China to trade ETFs in each other’s markets.
The southbound channel kicked off with four funds: the Tracker Fund of Hong Kong, CSOP Hang Seng Tech ETF, iShares Hang Seng Tech ETF, and Hang Seng China Enterprise Index ETF. The CSOP Hang Seng Index ETF was added in October 2022, and the Hang Seng Tech Index ETF in April this year.
The northbound channel, the trading avenue for China ETFs that are eligible to be traded in Hong Kong, is much more active and currently has 83 ETFs.
China’s onshore ETF market has approximately 1.95 trillion RMB (US$268.4 billion) of assets under management.
