香港ETF市场过去5年增速上升，平均每日成交额复合年增长率高达30%，今年首11个月平均每日成交额达到187亿港元。近年ETF市场结构持续优化，如于2020年推出新价位表将最低上落价位降低最多80%，从而收窄买卖差价，有效提高市场流动性及降低交易成本，继而推动成交额增长。The HKEX (00388) announced that the Hong Kong ETP (Exchange Traded Products, including ETFs and leveraged and inverse products) market will celebrate its 25th anniversary this November. After years of development, it has become the Asia ETF hub, covering 195 products, with a Market Cap reaching 463 billion Hong Kong dollars by the end of November.
According to Zhitong Finance APP, the HKEX (00388) announced that the Hong Kong ETP (Exchange Traded Products, including ETFs and leveraged and inverse products) market will celebrate its 25th anniversary this November. After years of development, it has become the Asia ETF hub, covering 195 products, with a Market Cap reaching 463 billion Hong Kong dollars by the end of November.
The first ETF in Asia (excluding Japan) was listed in Hong Kong in 1999, marking the beginning of the Hong Kong ETF market. Subsequently, it has seen the launch of various products covering Hong Kong Stocks, A-Shares, Bonds, and Gold. As the market matures, the range of products has become more diversified and has frequently led the market, such as the first global A-Share ETF launched in 2004; the first Asia Bond ETF launched in 2005; the first batch of leveraged and inverse products launched in 2016; and in April this year, the first batch of virtual asset spot ETFs in Asia, followed by the first Bitcoin inverse product in Asia in July. Currently, there are 10 virtual asset ETPs listed in Hong Kong, with a total Market Cap of 5.5 billion Hong Kong dollars by the end of November.
The Hong Kong ETF market has seen an increase in growth over the past five years, with an average daily transaction volume compound annual growth rate as high as 30%. In the first 11 months of this year, the average daily transaction volume reached 18.7 billion Hong Kong dollars. Recently, the structure of the ETF market has continued to optimize, such as the introduction of a new pricing table in 2020 that lowered the minimum bid and ask prices by up to 80%, thereby narrowing the spread and effectively improving market liquidity and reducing trading costs, which in turn drives transaction volume growth.
In addition, the ETF Connect officially launched on July 4, 2022, injecting new liquidity into the market, allowing international investors to invest in the mainland market through ETFs. After the expansion of ETF Connect in July this year, the Shanghai-Shenzhen-Hong Kong Stock Connect now has 242 qualified ETFs. In November, the average daily turnover of northbound trading reached 4 billion Hong Kong dollars, while southbound trading averaged 4.4 billion Hong Kong dollars daily.
The HKEX stated that new Technology and internationalization will be key factors driving the development of the Hong Kong ETF market. In terms of technology, the Hong Kong Exchange recently announced plans to digitize and automate the process of physical subscription and redemption of ETFs through an online platform by 2025, aiming to enhance the overall ETP market efficiency and promote continued growth in secondary market activities.
The HKEX pointed out that the product space of the Hong Kong ETF market is continuously internationalizing, with Saudi Arabia emerging as a highlight. After the Asia Pacific's first and the world's largest Saudi Arabia ETF was listed on the HKEX in November 2023, two ETFs tracking Hong Kong stocks were listed in Saudi Arabia in October this year and swiftly became among the top three ETFs by trading volume in that market, reflecting the local eagerness for investment in the Hong Kong market, and may potentially provide an additional source of funds for the Hong Kong ETF market.
