HKEX(HK:00388) Zheng Quan Ri Bao·2025-11-16 17:08Core Insights - The Hong Kong Stock Connect, which began operations on November 17, 2014, has successfully established a new model for capital market connectivity, expanding from stocks to bonds, ETFs, and interest rate swaps over the past 11 years [1][2]. Expansion and Activity - The Stock Connect has significantly increased trading activity, with southbound net purchases reaching approximately 1.3 trillion HKD in 2025, and cumulative net purchases exceeding 5 trillion HKD since inception [2]. - In the third quarter of 2025, the average daily trading volume for the Shanghai-Hong Kong Stock Connect and the Hong Kong Stock Connect reached record highs, with respective amounts of 206.4 billion RMB and 125.9 billion HKD, reflecting year-on-year increases of 67% and 229% [2]. ETF and Bond Market Developments - The number of eligible ETFs under the Stock Connect has grown from 83 to 273 since July 2022, catering to diverse investment needs [3]. - The Bond Connect has facilitated over half of international investments in the mainland bond market, with the "Northbound" and "Southbound" channels enhancing accessibility for foreign investors [3]. Internationalization and Index Inclusion - The establishment and optimization of the Stock Connect and Bond Connect have significantly enhanced the investability and internationalization of China's capital markets, contributing to the inclusion of Chinese A-shares and government bonds in major global indices [4]. Future Optimizations - Recent discussions indicate ongoing efforts to optimize the connectivity mechanisms, including expanding the scope of eligible products and improving the efficiency of foreign investment participation [5][6]. - The introduction of new features such as REITs and block trading mechanisms is being actively pursued to provide more investment options for both domestic and international investors [6]. Market Accessibility - The current foreign investment access framework is considered mature, with a focus on enhancing risk management tools and expanding the range of eligible products to further attract international capital [7].