ETF

Mainland ETFs dominate as China-Hong Kong trading scheme goes live

More than 80 Shanghai and Shenzhen-listed ETFs can now be traded via the northbound Stock Connect route

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.

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