Hong Kong debuts eight ETFs to channel Chinese demand for global assets
Eight exchange-traded funds offering exposure to South Korean, US and Malaysian equities listed in Hong Kong, as the city seeks to capture mainland demand for overseas assets.
Hong Kong welcomed eight new exchange-traded funds on Monday, giving investors access to South Korean chipmakers, US technology companies and Malaysian large-cap stocks. The listings arrive as the financial hub positions itself to capture mainland Chinese capital looking for overseas exposure.
The launch follows Beijing's decision last month to permit mainland insurance companies to invest in Hong Kong-listed ETFs through the Southbound Stock Connect programme. That change created a fresh avenue for insurers to seek better returns abroad.
The new products track cross-market indices developed by Hong Kong Exchanges and Clearing, with most providing exposure to both Hong Kong and international markets.
Speaking at the listing ceremony, HKEX chief executive Bonnie Chan said the exchange is working to build an ecosystem that connects global investors with opportunities across the region and beyond, adding that expanding the index business is central to that effort. She said the bourse will continue to aggressively grow this segment.
The push comes amid weak performance in mainland markets. China's 10-year government bond yield remains among the lowest globally, while the benchmark CSI 300 Index has declined about 4% this year, even as several major international equity markets have reached record highs. That divergence has fuelled demand among Chinese investors for diversification, while also adding to capital-outflow pressures.