Inclusion of ETF in Stock Connect

On 28 June 2022, the China Securities Regulatory Commission and the Hong Kong Securities and Futures Commission (SFC) issued a joint announcement regarding the inclusion by Mainland and Hong Kong exchanges of eligible exchange-traded funds (ETFs) in mutual stock market access between the Mainland and Hong Kong (ETF Connect).

From 4 July 2022 onwards, in addition to stocks, Mainland and Hong Kong investors may trade eligible ETFs listed on each other’s exchanges through local securities firms or brokers via the existing Stock Connect infrastructure.  Under the ETF Connect, there are currently 83 Mainland-listed ETFs which can be traded by international investors via the northbound Stock Connect routes, while four Hong Kong-listed ETFs have been added by the Shanghai and Shenzhen stock exchanges to the southbound Stock Connect which can be traded by mainland investors.

The ETF Connect is said to be an important milestone because the Stock Connect is expanded beyond stock trading for the first time.  It is hoped that the scheme will strengthen Hong Kong’s position as a top ETF hub and underscore Hong Kong’s unique role in connecting global capital with the Mainland.

For further information, please visit the SFC’s website at this link.

13 July 2022
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