HKEX Announces First ETF Cross-Listings in Hong Kong and Shanghai

Hong Kong Exchanges and Clearing Limited (HKEX) today announced the first Exchange Traded Funds (ETFs) listings in Hong Kong and Shanghai under the new Hong Kong-Mainland ETF Cross-listing Scheme announced in 2020.

Commenting on this news, Nicolas Aguzin, HKEX CEO, said, “We warmly welcome these two new ETFs to the market today, with one listed on HKEX and another on the Shanghai Stock Exchange (SSE). These listings mark an important step forward in the development of cross-border ETFs, and deepen the collaboration between Hong Kong and Mainland exchanges.”

“We are fully committed to continuing to build the fast-growing ETF market in Asia, working with the Mainland exchanges, regulators and market participants. Our ambition is to deliver a successful ETF Connect, as part of our strategic focus is to provide ever greater choice, opportunity and connectivity, strengthening Hong Kong’s role as an international financial centre,” said Mr Aguzin.

The new ETF listed today in Hong Kong – CSOP Huatai-PineBridge CSI Photovoltaic Industry ETF (Stock code: 3134) – has been approved by the Securities and Futures Commission. Through the Renminbi Qualified Foreign Institutional Investor (RQFII) status, the ETF invests 90 per cent or more of its total net asset in an ETF approved by the China Securities Regulatory Commission and currently listed on the SSE.

Hong Kong’s ETF market has one of the most diverse product offerings in Asia, and is being broadened further with growing exposure to China’s new economy. As at 28 May 2021, the over 140 Hong Kong-listed ETFs trade over $7.6 billion a day, up from an average daily turnover of $6.4 billion in 2020, with assets under management at over $400 billion.

As Fazzaco reported earlier, Nicolas Aguzin has taken his office as the new CEO of HKEX as well as an ex-officio member of the Board​ on May 24 2021, following the leaving of Mr Calvin Tai, the interim CEO,