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HKEX Introduces New Initiative to Facilitate Development of Fixed Income ETFs in Hong Kong

Market Operations
31 May 2021

  • Introduction of two new fee waivers for Hong Kong-listed fixed income ETFs and money market ETFs, effective today
  • Reflects HKEX’s commitment to enhancing liquidity and broadening product diversity in Hong Kong’s ETF market

 

Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce the introduction of two new fee waivers for Hong Kong-listed fixed income ETFs and money market ETFs. The new initiative is part of HKEX’s ongoing commitment to develop Hong Kong into Asia’s ETF marketplace through offering greater choice and broadening product diversity.

“The new fee waivers, which will help investors reduce costs for fixed income ETFs and money market ETF transactions, are HKEX’s latest initiative to enhance its ETF market structure and drive liquidity to Hong Kong-listed ETFs,” said Brian Roberts, HKEX’s Head of Exchange Traded Products.

“We believe the fee waivers are introduced at an opportune time as there has been a strong increase in investor demand for China fixed income products in recent years.”

Commencing today, 31 May 2021, the following fees will be waived for transactions of fixed income ETFs and money market ETFs:

  1. The trading tariff of $0.50
  2. The minimum stock settlement fee payable by each Clearing Participant or Clearing Agency Participant for each Exchange Trade1 or crossed Exchange Trade2 cleared and settled through CCASS

For further details of the new fee waivers, please refer to this circular or visit HKEX ETP webpage.

As of 28 May 2021, there are 29 fixed income and money market ETF trading counters eligible for the fee waivers. Please refer to the full list of Hong Kong-listed fixed income and money market ETFs that are eligible for the fee waivers.

The Hong Kong ETF market is one of the largest in Asia, with market capitalisation3 and average daily turnover reaching $404 billion and $7.8 billion respectively in the first four months of 2021.

 

Notes:

  1. Exchange Trade is defined in the Rules of the Exchange as a trade in a CCASS Eligible Security (other than a China Connect Security) either reported to the Exchange by an Exchange Participant or effected on the Exchange
  2. Crossed Exchange Trade is a trade where the buy and sell of an Exchange Trade is handled by the same Exchange Participant
  3. Exclude SPDR Gold Trust

 

 

About HKEX

Hong Kong Exchanges and Clearing Limited (HKEX) is one of the world’s major exchange groups, and operates a range of equity, commodity, fixed income and currency markets.  HKEX is the world’s leading IPO market and as Hong Kong’s only securities and derivatives exchange and sole operator of its clearing houses, it is uniquely placed to offer regional and international investors access to Asia’s most vibrant markets.

HKEX is also the global leader in metals trading, through its wholly owned subsidiaries, The London Metal Exchange (LME) and LME Clear Limited.  This commodity franchise was further enhanced with the launch of Qianhai Mercantile Exchange (QME), in China, in 2018.

HKEX launched the pioneering Shanghai-Hong Kong Stock Connect programme in 2014, further expanded with the launch of Shenzhen Connect in 2016, and the launch of Bond Connect in 2017.

www.hkexgroup.com

 

Ends

Updated 31 May 2021