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

Core Insights - Hong Kong Exchanges and Clearing (HKEX) anticipates continued growth in its ETF market following record turnover and new listings this year [1] - The average daily turnover in ETFs reached a record HK$37.8 billion (US$4.8 billion) in the first nine months, with 225 ETFs attracting more investors from various regions [1][5] - Hong Kong is now the world's third-largest ETF market, with a market size of HK$315.8 billion, trailing mainland China and the US [3] Market Performance - The benchmark Hang Seng Index increased by 35% in the first nine months, making it one of the best-performing major indices globally [5] - Mainland investors traded an average of HK$4.2 billion in ETFs per day in Hong Kong, marking a 128% increase year-on-year [7] - International investors' trading in mainland ETFs grew by 142% to 3.2 billion yuan (US$449 million) per day [7] Connectivity and Growth Factors - Connectivity is deemed critical for the growth of the Hong Kong ETF market, as highlighted by HKEX's head of exchange-traded products [4] - The cross-border ETF Connect mechanism has facilitated international investors' access to 273 ETFs listed in Shanghai and Shenzhen, while allowing mainland investors to access 17 ETFs in Hong Kong [5]