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Enoch Yiu

Bourse operator Hong Kong Exchanges and Clearing (HKEX) expects its exchange-traded fund (ETF) market to continue growing after hitting record turnover and new listings this year, according to a senior executive.
Average daily turnover in ETFs doubled to a record HK$37.8 billion (US$4.8 billion) in the first nine months, as the exchange’s 225 ETFs drew an increasing number of investors from mainland China, Asia, the Middle East and Europe.
ETFs are listed index funds that track the performance of stocks or bonds, often providing investors with a basket of assets. They differ from mutual funds in that they trade throughout the day like a stock, whereas mutual funds only trade once a day after the market closes.
Hong Kong is now the world’s third biggest ETF market worldwide, trailing mainland China’s market at HK$315.8 billion and far behind the US at HK$1.69 trillion, according to data from the HKEX.
“Connectivity has been critical and will remain critical to the growth of the Hong Kong ETF market,” said Jean-Francois Mesnard-Sense, head of exchange-traded products at HKEX, in a briefing on Friday ahead of the exchange operator’s second ETF Summit on Tuesday, which is expected to draw more than 400 experts.
Since 2022, the cross-border ETF Connect mechanism has allowed international investors to trade 273 ETFs listed in Shanghai and Shenzhen, while giving mainland investors access to 17 ETFs listed in Hong Kong.
Global investors have used ETFs as a short cut to access mainland and Hong Kong stocks this year, as the benchmark Hang Seng Index gained 35 per cent in the first nine months, making it one of the world’s best-performing major indices.
The rally kicked off after Chinese artificial intelligence start-up DeepSeek shocked the world with the debut of highly capable but cheaply developed AI models in December and January.

Mainlanders on average traded HK$4.2 billion in ETFs per day in Hong Kong via the connect scheme in the first nine months, up 128 per cent from a year earlier. Meanwhile, trading in mainland ETFs by international investors grew 142 per cent to 3.2 billion yuan (US$449 million) per day.
“There have been increased ties with the Middle East in recent years, with the launch of the largest Saudi ETF globally in Hong Kong in 2023, while there is also increased connectivity at play with some markets in Asean,” Mesnard-Sense said.
The bourse operator added 41 ETF listings in the first nine months of this year, surpassing last year’s total of 36 additions, which was a record high. The total of 225 listed ETFs had assets of HK$653 billion as of September, up 32 per cent from a year earlier, HKEX data showed.
Besides connectivity with international markets, Mesnard-Sense also credited the growth in ETF trading to improved market structure, after the exchange in November introduced market makers in certain trading sessions.
In addition, the exchange had launched new asset classes and now offered 13 virtual-asset ETFs from seven issuers, he said.
“We have been one of the most innovative ETF markets in the region,” he added.
The city’s ETF market would continue to grow with increasing connectivity and innovative new products, and would receive a boost from the silver economy, which refers to the investment needs of the ageing population, Mesnard-Sense added. Such consumers were attracted to ETFs that could provide them with regular income, he said.
HKEX has 21 income ETFs, which pay a dividend yield above 4 per cent. Average daily turnover for these reached HK$206.6 million in the first nine months, seven times their volume of HK$28.7 million a year earlier.
“The ETF landscape is incredibly competitive,” Mesnard-Sense said. “We are very well positioned in Hong Kong, as the city is an international financial centre with the ability to attract investors from the region. But we need to continue to innovate.”


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Daily turnover doubled to US$4.8 billion and will keep growing amid new asset classes and market connectivity, senior executive says


Daily turnover doubled to US$4.8 billion and will keep growing amid new asset classes and market connectivity, senior executive says.


Hong Kong exchange sees further growth ahead for record-setting ETF market

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Daily turnover doubled to US$4.8 billion and will keep growing amid new asset classes and market connectivity, senior executive says

Daily turnover doubled to US$4.8 billion and will keep growing amid new asset classes and market connectivity, senior executive says