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HKEX Welcomes First Hong Kong/Mainland ETF Cross-Listing

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23 Oct 2020

  • First listings of ETFs in Hong Kong and Shenzhen under a new ETF Cross-listing Scheme
  • Signing of MOU between HKEX and SZSE to promote the Scheme
  • Hong Kong-listed ETF AUM grew to over $300 billion, as at 30 September 2020

 

Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to welcome today (Friday) the first listings of Exchange Traded Funds (ETFs) in Hong Kong and Shenzhen under the Hong Kong-Mainland ETF Cross-listing Scheme, which facilitates cross-listing of ETFs between markets in Hong Kong and Mainland China.

HKEX Chief Executive Charles Li said: “The ETFs listed today, two each at HKEX and the Shenzhen Stock Exchange (SZSE) under the ETF Cross-listing Scheme, mark the exciting next chapter in cross-border ETFs. The Scheme facilitates access to new but established pools of liquidity and offers broader investment opportunities in both markets.” 

“This development is the result of our ongoing commitment to make Hong Kong Asia’s leading ETF marketplace, and represents an important step forward in our continued work with the onshore Chinese exchanges, and our regulators, to deliver a successful ETF Connect.”

The two new ETFs listed today in Hong Kong – CSOP Yinhua CSI 5G Communications Theme ETF (Stock code: 3193) and Hang Seng Harvest CSI 300 Index ETF (Stock code: 3130 / 83130), have been approved by the Securities and Futures Commission. Through the Renminbi Qualified Foreign Institutional Investor (RQFII) status, each invests 90 per cent or more of its total net asset value in an ETF approved by the China Securities Regulatory Commission and currently listed on the SZSE.

HKEX and SZSE today also signed a memorandum of understanding (MOU) to promote the ETF Cross-listing Scheme and celebrate the well-established financial connections of the two markets.

Mr Li said: “Capital markets in Hong Kong and the Mainland have remained robust and resilient through recent challenging times, and today we are celebrating our shared strengths. The signing of the MOU is an important step forward in building valuable financial connections within the Greater Bay Area.”

Since the first ETF listed on HKEX in 1999, Hong Kong’s Exchange Traded Products (ETPs) market, which include ETFs and Leveraged and Inverse Products, has developed into one of the most diverse product markets in Asia. With over 130 ETFs listed on HKEX, Hong Kong-listed ETFs trade over $6.7 billion a day1 (up from an average daily turnover of $4.5 billion in 2018), with assets under management standing at over $300 billion as at 30 September 2020.

Further information about Hong Kong-listed ETPs is available in HKEX’s website.

 

Note 1:

For the first nine months in 2020.

 

 

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 23 Oct 2020