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Investors

Exchange Traded Products (ETPs) are an increasingly popular investment tool that has transformed the way institutional and retail investors build a diversified portfolio. Investors find ETPs to be a simple investment tool to gain:

diverse 

Access

Diversified access to a wide range of asset classes, sectors, geographies & innovative strategies 
funded 

Cost-efficiency 

Low transaction cost 
Convenience 

Convenience 

Trade anytime HKEX is open  

Access HKEX ETP list here.

HKEX Listed Exchange Traded Products (ETPs)
healthy
Exchange Traded Funds

An Exchange Traded Fund (ETF) is a passively managed fund that trades like a stock on an exchange. Its principal objective is to replicate the performance of the underlying index.  Download ETF Leaflet

LnI
Leveraged and Inverse Products

A Leveraged and Inverse Product (L&I Product) seeks to achieve short-term investment results that correspond to the daily leveraged (2x) or daily inverse (-1x) of the underlying benchmark.  Download L&I Product Leaflet

Why invest in Hong Kong listed ETPs?

diverse
Diversified Exposure

HKEX offers the most diversified product line-up in Asia with over 130 ETPs providing access to the global equity, commodity and fixed income markets. This enables investors to select their preferred ETPs based on investment objective and risk appetite.

Liquidity
Deep Source of Liquidity

With over 25 liquidity providers a deep source of liquidity is always available for investors to buy and sell ETPs with relative ease.

Tax
Tax Efficiency

Often overlooked, Hong Kong’s low and simple tax regime allows Asian investors to enjoy relatively higher after-tax returns resulting in higher portfolio return on investment (ROI).

Asia
Asia’s Local Market

Increasingly investors are investing in Asian markets through ETPs. For the optimal liquidity and price discovery, its best to trade those products during Asian market hours.

What are some common uses of ETPs?

Due to ETPs versatility, investors have found both tactical (shorter-term) and strategic (longer-term) uses for ETPs. Here are some of the more commonly used strategies.

Tactical Uses Strategic Uses
Tactical Adjustments

Over or under-weight exposures on the basis of short-term views

Asset Allocation

Gain long-term asset allocation among primary asset classes such as equities, fixed income and commodities

Cash Equitisation

Use ETPs to invest surplus cash to maximise returns and/or minimise cash drag
Sub Asset Allocation

Strategic tilts within asset classes such as small capitalisation stocks
Interim Beta

Access market exposure while evaluating managers or refining strategic investment view
Liquidity Management

Ability to refine portfolio positions without impacting longer-term holdings or gain quick access to liquidity for unexpected and immediate needs
Leverage / Inverse Investing

Capitalise on short-term market movements with leveraged or inverse (short) investing  
Portfolio Completion

Fill gaps to desired allocation with exposure to specific areas of the market

 

Updated 28 Nov 2017

Trading Information

Trading Arrangement

ETPs are traded on the securities market of HKEX.

See more:

Download Exchange Traded Product Trading Arrangement

Transaction cost

Transaction of ETPs is subject to trading fee, trading tariff, transaction levy and settlement fee. Stamp duty is waived for all ETPs.

See more:

Trading cost 

Clearing and settlement cost

Trading Currency

ETPs can be traded in HKD, RMB (CNH) or USD.  

Short Name Convention and Stock Code Allocation

Investors can distinguish between different types and trading counters of an ETP by their stock codes and stock short names.

See more:

Download Naming Convention of Stock Short Name and Stock Code

Distribution of L&I Products by Intermediaries

Intermediaries are advised to note and understand L&I Product features and corresponding obligations when providing services to clients.

See more:

Download Distribution of L&I Products by Intermediaries 

Participant Circular on Launch of Leveraged and Inverse Products

SFC’s Circular on Providing Services to Clients with respect to Leveraged and Inverse Products

Updated 28 Nov 2017

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