Hong Kong ETP market overtakes South Korea, Japan to rank third globally

Hong Kong’s exchange-traded products market has overtaken South Korea and Japan to become the world’s third-largest by trading turnover, the city's bourse operator said.

Average daily turnover in the city’s ETP market reached HK$37.8 billion, a 150 percent year-on-year increase, while its turnover velocity ranked first globally, Hong Kong Exchanges and Clearing (0388) said. Turnover velocity measures how frequently ETPs are traded relative to their assets.

HKEX attributed the strong momentum to rising demand for technology-themed exchange-traded funds and robust cross-border trading of eligible products through the Southbound Stock Connect.

In the first three quarters of 2025, 14 tech-focused ETFs were listed in Hong Kong, with total assets under management doubling to HK$120.1 billion. Their average daily turnover climbed nearly 2.5 times to HK$7.4 billion, with net inflows of HK$29.1 billion.

Meanwhile, average daily ETF turnover via Stock Connect reached HK$4.2 billion and 3.2 billion yuan, respectively, both more than doubling from a year earlier. Trading through the Southbound Stock Connect hit a record HK$9.1 billion per day in August.

The exchange also noted that active ETFs have been a global highlight in 2025, attracting about US$183 billion (HK$1.43 trillion) of inflows in the first half, according to Morningstar, driven by a market rebound, solid second-quarter earnings and resilient technology performance.

There were 31 active ETFs listed in Hong Kong as of end-September, five more than at end-2024, with a total market capitalization of HK$23.7 billion, up 140 percent year-on-year.

STAFF REPORTER