Hong Kong Exchanges and Clearing Limited (HKEX) will now allow Chinese Mainland insurance funds to invest in Hong Kong exchange-traded funds through the Southbound Stock Connect channel, following an announcement by the National Financial Regulatory Administration (NFRA). The expansion, effective immediately, marks a significant step in deepening capital market integration between Hong Kong and mainland China.
- ETF inclusion in Stock Connect: 2022
- Average daily Southbound ETF turnover (Jan-July 2026): $5.8 billion, up 61% year-on-year
- Average daily Northbound ETF turnover (Jan-July 2026): RMB5.1 billion, up 86% year-on-year
- Hong Kong ETF market average daily turnover (Jan-July 2026): $40.6 billion, up 22% year-on-year
HKEX Chief Executive Officer Bonnie Y Chan stated that mainland insurance funds diversifying asset allocation through Hong Kong ETFs will enhance market depth and vibrancy. The move supports the long-term development of Stock Connect, the mutual market access programme between Hong Kong and mainland China, while reinforcing Hong Kong’s position as a gateway for capital flows between China and global markets.
The announcement came during a delegation visit to Beijing led by Hong Kong Secretary for Financial Services and the Treasury Christopher Hui, where officials met with NFRA Vice Minister Xiao Yuanqi to discuss capital market cooperation. Since ETFs entered Stock Connect in 2022, trading activity has accelerated significantly across both directions, with Southbound flows driving expansion in Hong Kong’s ETF ecosystem.
HKEX operates as one of the world’s leading exchange groups, offering equity, derivatives, commodities, and fixed-income markets alongside the London Metal Exchange, and facilitating two-way capital flows between China and international markets through its Connect schemes.
Bonnie Y Chan, Chief Executive Officer at HKEX. Source: LinkedIn
Xiao Yuanqi, Vice Minister of NFRA. Source: LinkedIn NFRA
