Core Viewpoint - Six ETFs listed in Hong Kong have been included in the "Southbound ETF Connect" starting November 10, enhancing cross-border investment opportunities for investors in mainland China and Hong Kong [1][4]. Group 1: ETF Inclusion Details - The six ETFs added to the Southbound ETF Connect are: ICBC Southbound China (03167), Southern Hang Seng Biotechnology (03174), CMB Hang Seng Technology (03423), Southern Hong Kong Stock Connect (03432), Southern East-West Select (03441), and Southern Hong Kong-US Technology (03442) [2][1]. - This adjustment expands the Southbound ETF Connect list from 17 to 23 ETFs [4]. Group 2: Market Performance and Trends - Since the launch of the ETF inclusion in the interconnection mechanism between mainland and Hong Kong stock markets in July 2022, the trading has been stable and orderly, with increasing trading volumes [4]. - In the first three quarters of 2025, the average daily trading amount for Southbound trading ETFs reached HKD 4.2 billion, with a record monthly high of HKD 9.1 billion in August 2025 [4]. - For the same period, the average daily trading amount for Northbound trading ETFs was RMB 3.2 billion [4].

Core Viewpoint - The "Southbound ETF Connect" is expanding with the addition of 6 new ETFs, increasing the total from 17 to 23, effective from November 10, 2023, enhancing product diversity and including non-Hong Kong stock assets for the first time [1][2][3]. Group 1: Expansion Details - The new ETFs added include 工银南方中国, 南方恒生生科, 招商恒生科技, 南方港股通, 南方东西精选, and 南方港美科技, which will broaden the investment options available to investors [2]. - The 南方东西精选 ETF includes high-dividend stocks listed on the Hong Kong Stock Exchange and top U.S. large-cap stocks based on free cash flow yield [2]. - The 南方港美科技 ETF tracks top technology companies in both Hong Kong and the U.S., including major players like Alphabet, Amazon, and Apple [2]. Group 2: Market Impact - Since the launch of the ETF Connect in July 2022, the average daily trading volume for the Southbound ETF Connect has exceeded 4.2 billion HKD, with a year-on-year increase of 128% [3]. - The expansion is expected to enhance product selection for investors, facilitating more efficient asset diversification in Hong Kong [3][4]. - The Southbound ETF Connect offers advantages such as longer trading hours, T+0 trading, and lower premium rates due to a mature market-making system [4]. Group 3: Future Outlook - The inclusion of U.S. stock assets in the ETFs allows investors to access global core assets with lower barriers, promoting risk diversification and encouraging product innovation [5]. - The Southbound ETF Connect is anticipated to continue growing in terms of product quantity and structure as cross-border investment opportunities expand [4].