HKEX Welcomes Mainland Insurance Funds to Invest in Hong Kong ETFs
Hong Kong Exchanges and Clearing Limited (HKEX) is allowing Chinese Mainland insurance funds to invest in Hong Kong exchange-traded funds (ETFs) through Southbound Stock Connect. HKEX said the move could support the growth of the Stock Connect programme and Hong Kong’s ETF market.
Invest in Hong Kong ETFs
The new measure lets Chinese Mainland insurance funds access Hong Kong ETFs through Southbound Stock Connect. It gives insurance funds another way to diversify their asset distribution. It also brings more institutional investment into Hong Kong’s ETF market.
What Executive Says
HKEX Chief Executive Officer Bonnie Y Chan welcomed the announcement. She described it as an important development for Stock Connect, which connects the capital markets of Hong Kong and the Chinese Mainland. Chan said the move could increase market activity and depth as Mainland insurance funds diversify their portfolios through Hong Kong ETFs. She also highlighted Hong Kong’s role in connecting China with global markets. She added that HKEX welcomes Mainland insurance institutions to use its multiple products and risk-management tools to manage and optimise portfolios.
Capital Market Development
Chan also joined a delegation in Beijing led by Hong Kong Secretary for Financial Services and the Treasury Christopher Hui. The delegation met with Xiao Yuanqi, Vice Minister of NFRA. They discussed measures to support the mutual development of the capital markets in the Chinese Mainland and Hong Kong.
ETF Trading Growth
ETFs became part of Stock Connect in 2022. Since then, trading volumes through Northbound and Southbound channels have only increased. Southbound ETF trading has played an active role in Hong Kong’s ETF market growth. During the first seven months of 2026, average daily turnover reached $5.8 billion for Southbound ETFs. It was 61% higher than the same period last year.
Northbound ETFs recorded average daily turnover of RMB5.1 billion during the same period. It shows an 86% increase year on year. Hong Kong’s overall ETF market also recorded growth. Average daily ETF turnover reached $40.6 billion in the first seven months of 2026. It was up 22% from a year earlier.
About HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is one of the largest exchange groups in the world. It provides a platform for trading various financial instruments, including equities, derivatives, and commodities. HKEX plays a crucial role in linking Chinese markets with international investors.
Wrapping Up
The new measure gives Mainland insurance funds access to Hong Kong ETFs through Southbound Stock Connect. HKEX expects it to support market activity and depth.
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