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]

Market Performance - The Hong Kong stock market showed strong performance on October 21, with the Hang Seng Index rising by 0.65% to 26,027.55 points, and the Hang Seng Technology Index increasing by 1.26% to 6,007.94 points [2][3] - The total market turnover for the day was HKD 264.7 billion, showing a slight recovery compared to the previous trading day, with net inflow from southbound funds amounting to HKD 1.171 billion [2] Company Highlights - Pop Mart experienced a significant drop of 8.08% on October 21, despite a remarkable cumulative increase of 180.46% in its stock price since the beginning of 2025. The company reported a year-on-year revenue growth of 245% to 250% for Q3 2025, with domestic revenue increasing by 185% to 190% and overseas revenue soaring by 365% to 370% [4] - Semiconductor company SMIC saw its stock rise by 3.13%, with a year-to-date increase of 132.86%. The current stock price is HKD 74.05, down from a 52-week high of HKD 93.5. The surge in memory prices, particularly DDR4, is expected to benefit domestic manufacturers, with analysts highlighting SMIC's investment value in the semiconductor sector [7] - China Life Insurance's stock rose by 6.06% following a profit forecast announcement, estimating a net profit of approximately RMB 156.785 billion to RMB 177.689 billion for the first three quarters of 2025, representing a year-on-year growth of 50% to 70% [10] ETP Market Insights - As of September 2025, Hong Kong's ETP market ranked third globally in average daily turnover, surpassing South Korea and Japan. The total assets under management for ETPs grew by 34.1% year-on-year to HKD 653.5 billion [10] - The growth in the ETP market is attributed to the popularity of technology-focused ETFs, particularly the flagship Hang Seng Technology Index ETP, and increased investor participation through the Hong Kong Stock Connect [10] - Active ETFs have become a focal point in the global market in 2025, with inflows reaching USD 183 billion in the first half of the year. The number of active ETFs listed in Hong Kong increased to 31 by September 2025, with a total market value of approximately HKD 23.7 billion, reflecting a 143% growth from the previous year [11]

Core Insights - The Hong Kong ETP market is projected to experience strong growth in 2025, becoming the third-largest market globally in terms of ETP trading volume [1] Market Performance - As of September 2025, the average daily trading volume of the Hong Kong ETP market reached HKD 37.8 billion, representing a year-on-year increase of 146% [1] - The market has surpassed South Korea and Japan in ETP trading volume [1] Sector Contributions - The surge in the ETP market is primarily driven by the popularity of technology-themed exchange-traded funds (ETFs), particularly the flagship Hang Seng Tech Index ETP [1] - The number of technology-themed ETFs listed in Hong Kong reached 14 in the first three quarters of 2025, with a total asset management scale of HKD 120.1 billion, marking a year-on-year increase of 102% [1] Biotechnology Sector - In the biotechnology sector, three biotechnology-themed ETFs were listed year-to-date, with a total asset management scale of HKD 3.4 billion, reflecting a growth of 123% compared to September 2024 [1]

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]