Investors in mainland China and Hong Kong began trading exchange traded funds across each other’s markets this week, with strategies from the mainland far outnumbering their Hong Kong-listed counterparts.
Under the new cross-border trading scheme, which debuted on the first trading day after the 25th anniversary of the handover of Hong Kong on July 1, 83 mainland-listed ETFs, including 53 in Shanghai and 30 in Shenzhen, can now be traded by international investors via the northbound Stock Connect route, compared with only four Hong Kong-listed ETFs during the initial stage.
As of the end of June, the 83 ETFs ran a combined Rmb674.6bn ($100.4bn) in assets, Wind data show, accounting for nearly 70 per cent of the mainland ETF market.