The scheme will link the Hong Kong and Shanghai exchanges and allow institutions and wealthy individuals to trade cross-border. The launch is expected next month.
Building on an already impressive growth trajectory, the Hong Kong ETF market is becoming an increasingly attractive investment destination with a focus on innovation, new product launches, and regulatory enhancements.
The expansion will boost inflows to Hong Kong and mainland China stock markets, but the real game changer will be when mainland investors can invest in secondary-listed Chinese companies in Hong Kong.
Another year of travel restrictions would severely test the patience of Hong Kong asset management professionals. But they still have faith in the huge potential of Hong Kong as a gateway for mainland China’s wealth.
After 40 years of servicing the Asia Pacific region, State Street highlights the key trends it expects to shape the future of the asset management industry.
Despite high expectations for a finance super-highway as part of the Guangdong-Hong Kong-Macao Greater Bay Area, some say the connect schemes are faltering.
The cross-border ETF link between Hong Kong and mainland China is set to boost the country’s global market integration and further strengthen Hong Kong's ETF flow.
A scheme to link the Hong Kong and Shanghai exchanges and allow institutions and wealthy individuals to trade cross-border is broadly welcomed. The launch is expected in six months, potentially alongside mutual recognition of funds.
Authorities release draft regulations for the pending scheme to link the two bourses, although updates on taxation and how trades can be placed are still to be announced.