More ETFs fill the Stock Connect

Staff reporter

The number of exchange-traded funds in a trading channel linked to the mainland has exceeded 240, amid expectations that Stock Connect schemes will be further expanded next year.

This comes after more ETFs were included in the Stock Connect in July, according to Under Secretary for Financial Services and the Treasury Joseph Chan Ho-lim, who addressed a summit organized by Hong Kong Exchanges and Clearing (0388).

At the same event, HKEX's deputy chief executive Wilfred Yiu Ka-yan said the trading volume of ETFs has kept climbing since their inclusion in the Stock Connect in 2022.

Yiu added that Hong Kong has become the most dynamic and innovative ETF market in Asia, with about 200 ETFs listed on the Main Board and a total market capitalization of HK$500 billion.

Hong Kong Monetary Authority deputy chief executive Howard Lee Tat-chi noted that new markets in the Middle East including Saudi Arabia are crucial for the city.

In other news, Chinese Securities Association of Hong Kong president Huang Haiqin in an interview said the yuan-denominated counter could be added to Southbound Connect and offshore Treasury futures next year.

Meanwhile, 14 brokers were added to the wealth connect scheme last week, bringing more offshore investment options for mainland investors.

In another development, HKEX announced plans to digitize and automate the subscription and redemption process for exchange-traded products next year. It aims to simplify operations by reducing reliance on manual and paper-based steps.