Core Insights - Hong Kong's ETP (including ETFs and leveraged/inverse products) has achieved record daily trading volume, with a year-on-year increase of 146% in the first three quarters, making it the third-largest ETP market globally, surpassing South Korea and Japan [1][3] - The significant contribution from southbound capital, particularly in technology ETFs, has driven this growth, with the Hang Seng Tech Index ETP being a major contributor [2][3] - The asset management scale of Hong Kong's ETP market has grown by 34.1% year-on-year, reaching HKD 653.5 billion, with technology and biotechnology products being the most favored [4] ETP Market Performance - As of September 2023, the average daily trading amount for Hong Kong ETPs reached HKD 37.8 billion, marking a 146% increase year-on-year, establishing Hong Kong as a leading global market [3] - The turnover rate of Hong Kong's ETP market has surged to 14.7, solidifying its position as the highest globally [4] Southbound Capital and ETF Expansion - The inclusion of more ETFs in the Stock Connect program is expected in November, which will further enhance cross-border ETF trading activity [2][6] - The number of qualified ETFs under the Stock Connect has increased, with 290 ETFs currently eligible, including 273 mainland-listed and 17 Hong Kong-listed ETFs [6] Active ETFs Growth - Active ETFs in Hong Kong have seen a remarkable increase, with average daily trading volume growing over three times in the first three quarters of 2025, driven by strong market performance and robust company earnings [7] - As of September 2025, there are 31 active ETFs listed in Hong Kong, with a total market value of approximately HKD 23.7 billion, reflecting a 143% increase from the previous year [7]

Core Insights - Hong Kong has become the third largest ETP market globally, surpassing South Korea and Japan, with a total asset management scale of HKD 653.5 billion, reflecting a year-on-year growth of 34.1% [1][2] - The average daily trading volume of ETPs reached HKD 37.8 billion by the end of September, marking a significant increase of 146% year-on-year, driven primarily by the popularity of technology-focused ETFs and cross-border trading through the Stock Connect programs [1][2] Group 1 - The ETP market in Hong Kong is experiencing explosive growth, with technology-related ETFs, particularly the flagship Hang Seng Tech Index ETP, significantly contributing to overall market expansion [1] - The average daily trading volume of ETFs through the Stock Connect programs reached HKD 4.2 billion and RMB 3.2 billion respectively, with a record high of HKD 9.1 billion in August [2] - A total of 290 eligible ETFs are available for trading through the Stock Connect, with expectations for more ETFs to be included in November, indicating a sustained increase in cross-border ETF trading activity [2]

Core Insights - The Hong Kong ETP market is projected to experience strong growth by 2025, becoming the third-largest market globally as of September 2023, surpassing South Korea and Japan [1][2] Group 1: Market Performance - As of September 2023, the trading volume of ETPs in Hong Kong has significantly increased, driven by the popularity of technology-related ETFs, particularly the flagship Hang Seng Tech Index ETP [1] - The average daily trading volume of ETFs through Stock Connect programs reached HKD 4.2 billion and RMB 3.2 billion, representing year-on-year increases of 128% and 142%, respectively [1] Group 2: Trends and Innovations - Six key trends are identified for the Hong Kong ETP market: leading turnover rates globally, product innovation catering to retail investor needs, growth driven by cross-border connectivity, increasing interest in technology and biotech products, deepening global connectivity, and the rise of actively managed ETFs [1] - In the first three quarters of 2025, 14 technology-themed ETFs were launched in Hong Kong, with total assets under management reaching HKD 120.1 billion, a year-on-year increase of 102% [2] Group 3: Cash Flow and Investment - The average daily trading volume for the year-to-date reached HKD 7.4 billion, reflecting a year-on-year increase of 247%, with a total net cash inflow of HKD 29.1 billion [2]

Core Insights - The Hong Kong ETP market is experiencing significant growth, becoming the third largest globally by trading volume as of September 2025, with a year-on-year asset management growth of 34.1% to HKD 653.5 billion [1] Group 1: Market Performance - The average daily trading volume in the Hong Kong ETP market reached HKD 37.8 billion by September 2025, a 146% increase year-on-year, surpassing both South Korea and Japan [1] - The turnover rate of the Hong Kong ETP market is the highest globally, achieving a rate of 14.7 by September 2025, up from 10.2 in 2024 [2] Group 2: Product Innovation - The launch of Asia's first individual stock leveraged and inverse products in March 2025 has catered to retail investor demand, particularly for stocks like NVIDIA and Tesla [3] - The average daily trading volume for all leveraged and inverse products in Hong Kong reached HKD 3.6 billion by September 2025, a 51% increase year-on-year [3] - The introduction of covered call ETFs has gained popularity, with total assets reaching HKD 8.6 billion, a more than 32-fold increase year-on-year [3][4] Group 3: Cross-Border Trading - The average daily trading volume for ETFs through the Stock Connect programs reached HKD 4.2 billion and RMB 3.2 billion, reflecting year-on-year increases of 128% and 142%, respectively [5] - A total of 290 ETFs are eligible for trading through the Stock Connect, indicating a growing cross-border trading environment [6] Group 4: Sector Focus - The technology-themed ETFs saw a total asset management of HKD 120.1 billion, a 102% increase year-on-year, with an average daily trading volume of HKD 7.4 billion [7] - Three biotechnology-themed ETFs launched in 2025 have attracted net cash inflows of HKD 1.3 billion [7] Group 5: Global Connectivity - The listing of ETFs tracking the Nasdaq 100 index in February 2025 has enhanced investment opportunities for local investors in major U.S. companies [8] - A memorandum of understanding signed with the Abu Dhabi Securities Exchange in September 2025 aims to strengthen financial market connections between Hong Kong and the UAE [8] Group 6: Active ETFs - Active ETFs have gained traction, with inflows reaching USD 183 billion in the first half of 2025, leading to a total of 31 active ETFs listed in Hong Kong by September 2025, up from 26 at the end of 2024 [9] - The total market value of active ETFs in Hong Kong reached HKD 23.7 billion, a 143% increase year-on-year [9]