Core Insights - The Hong Kong ETP market is experiencing significant growth, projected to be a breakthrough year in 2025, with a year-on-year asset management increase of 34.1%, reaching HKD 653.5 billion [2][3] Group 1: Market Performance - As of September 2025, the average daily trading volume in the Hong Kong ETP market reached HKD 37.8 billion, a 146% increase year-on-year, making it the third-largest ETP market globally, surpassing South Korea and Japan [2][3] - The turnover rate in the Hong Kong ETP market is leading globally, with a liquidity ratio of 14.7 as of 2025, up from 10.2 in 2024 and 9.0 in 2023 [3] Group 2: Product Innovation - The introduction of individual stock leveraged and inverse products in March 2025 has catered to retail investor needs, providing strategic investment tools for trading international equities during Asian hours [3] - The popularity of covered call option ETFs has increased since their launch in February 2024, appealing to investors seeking high-yield products in an unstable macro environment [4] Group 3: Cross-Border Trading - The average daily trading volume for ETFs through the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect reached HKD 4.2 billion and HKD 3.2 billion respectively, with significant year-on-year increases of 128% and 142% [5] - The anticipated inclusion of more ETFs in the Stock Connect program in November 2025 is expected to further enhance cross-border trading activity [5] Group 4: Sector Focus - In the first three quarters of 2025, 14 technology-themed ETFs were launched in Hong Kong, with a total asset management size of HKD 120.1 billion, reflecting a 102% year-on-year increase [5] - The biotechnology sector has also seen growth, with three biotechnology-themed ETFs launched this year, totaling HKD 3.4 billion in assets, a 123% increase from September 2024 [5] Group 5: Active ETFs - The inflow of funds into active ETFs in Hong Kong reached USD 183 billion in the first half of 2025, driven by strong market rebounds and robust company earnings [6] - Asset management firms are accelerating the launch of more active products to meet investor demand for results-oriented and yield-focused strategies [6]