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ETF Connect expands again, further enriching domestic and overseas fund layout tools

2024-07-15

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On July 12, the Hong Kong Stock Exchange and the Shanghai and Shenzhen Stock Exchanges announced the latest list of ETF Connect (the interconnection mechanism between the mainland and Hong Kong stock markets) according to the new inclusion criteria. A total of 85 ETFs were transferred into the northbound Shanghai and Shenzhen Stock Connects, and a total of 6 ETFs were transferred into the southbound Hong Kong Stock Connect.

After the expansion, there will be 225 ETFs on the list of northbound Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, from 29 ETF management institutions. Wind data shows that as of July 12, the asset size of the northbound ETF Connect after the expansion reached 1.7 trillion yuan, an increase of nearly 100 billion yuan compared with 1.61 trillion yuan before the expansion.

Since the launch of ETF Connect on July 4, 2022, the included products have been continuously enriched, and the trading popularity and transaction amount have gradually increased. As of July 12, the cumulative trading volume of Northbound ETF Connect reached 211.8 billion yuan, and the cumulative trading volume of Southbound ETF Connect reached 495.7 billion yuan.

The expansion will take effect on July 22. The expansion of ETF Connect not only enriches investors' layout tools, but also helps to improve the liquidity of ETF products in both places and enhance the international status of China's capital market. (Securities Times)