“ETF通”三周年蝶变

Core Viewpoint - The "ETF Connect" has significantly transformed the capital market landscape in China over the past three years, enhancing trading activity and providing new momentum for market development [1][2]. Summary by Sections Development and Growth of "ETF Connect" - Since its launch on July 4, 2022, the number of "ETF Connect" products has increased from 87 to 265, reflecting a substantial expansion in product offerings [3][4]. - Trading volume has surged, with northbound trading reaching a total of 256.36 billion RMB in the first five months of the year, a 148% increase compared to the same period last year, while southbound trading amounted to 416.34 billion HKD, a 180% increase [3][4]. Impact on Market Integration and Internationalization - "ETF Connect" has played a crucial role in enhancing the integration of domestic and Hong Kong markets, facilitating cross-border investment and promoting the internationalization of the RMB [4][5]. - The mechanism has been recognized as a key component of China's financial opening strategy, providing a more convenient and efficient investment channel compared to traditional methods like QFII and RQFII [7][8]. Advantages of "ETF Connect" - The mechanism allows for easier access to a diverse range of investment products without the complexities of qualification and capital approval processes, thus attracting more international investors [7][8]. - "ETF Connect" has been described as a "passive investment bridge" that not only enhances trading activity but also fosters deeper integration of market rules, valuation systems, and investor structures between mainland China and Hong Kong [8][9]. Future Potential and Innovations - The lowering of entry thresholds for "ETF Connect" is expected to further stimulate product innovation and layout by asset management institutions in both regions [8]. - The inclusion of REITs and support for leading domestic companies to list in Hong Kong are among the measures being implemented to inject new vitality into the capital market [9].