Hong Kong, Shanghai see first ETF cross-listings with market ties closer

Hong Kong and Shanghai witnessed the first cross-listings of exchange traded fund yesterday, indicating increasingly closer ties between financial markets of the two sides.

The CSOP Huatai-PineBridge CSI Photovoltaic Industry ETF was listed in Hong Kong yesterday under a Hong Kong-mainland cross-listing scheme that was announced in 2020, according to Hong Kong Exchanges and Clearing.

The product invests 90 percent or more of its total net asset in the ETF currently listed on the Shanghai Stock Exchange.

"We warmly welcome the new ETF to the market today," HKEX chief executive Nicolas Aguzin said, adding the listing marked an important step forward in the development of cross-border ETFs, and served to "deepen the collaboration between Hong Kong and mainland exchanges."

Hong Kong's ETF market has one of the most diverse product offerings in Asia and is broadening further with exposure to the mainland's new economy.

As of May 28, more than 140 Hong Kong-listed ETFs traded over 7.6 billion Hong Kong dollars (US$1 billion) a day, with assets under management at over HK$400 billion.

Aguzin said HKEX will continue to work with mainland exchanges, regulators and market participants to build the fast-growing ETF market, improve mainland-Hong Kong financial connectivity, and boost Hong Kong's role as an international financial center.