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Hong Kong-listed ETFs expected to benefit from Greater Bay Area growth, upcoming connect scheme
- Investors can use ETFs to invest in mainland China with Hong Kong serving as the ideal location to develop these products, Mirae’s Hong Kong CEO says
- Talks on a planned ETF connect scheme between Hong Kong and mainland China have stalled because of technical issues
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Exchange-traded funds in Hong Kong are expected to see strong growth because of the development potential of the Greater Bay Area, growing interest among investors and a new cross-border trading scheme in the works for ETFs, according to industry players.
Seoul-headquartered Mirae Asset Global Investments, the largest ETF issuer in Asia excluding Japan by global assets according to research firm ETFGI, is among those expecting opportunities to arise in Hong Kong.
The company will broaden its Hong Kong-listed ETF range next year with new asset classes and investment strategies, said Rhee Jung-ho, president and chief executive officer of Mirae Asset Global Investments (Hong Kong).
“We have seen a lot of international investors who are interested in the Greater Bay Area as well as the rapidly advancing, innovation-driven industries of mainland China,” Rhee said in an interview with the South China Morning Post. “Investors use ETFs as a convenient vehicle to invest in mainland China, and Hong Kong is an ideal location to develop these products due to its unique position as the global gateway to China.”
Over 143 ETFs are listed on the Hong Kong stock exchange and have a market cap of about HK$400 billion (US$51. 4 billion). The average daily turnover of ETFs in the first nine months of 2021 was HK$6.7 billion, 31 per cent more than a year earlier, according to exchange data.
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