Hong Kong’s ETP market growth has surged this year, propelling the city into the global top three by daily turnover. The local exchange-traded products market, including ETFs and leveraged and inverse products, averaged HK$37.8 billion daily as of September. This level surpassed South Korea and Japan.
The turnover velocity also rose to 14.7, indicating ETPs trade more actively in Hong Kong than in most global markets. Brian Roberts, HKEX managing director and head of equities product development, said asset value in Hong Kong’s ETF market doubled over the past decade. It grew from HK$300 billion to HK$650 billion by 2025.
He highlighted that the city now hosts over 200 ETFs, including AI and biotech-focused leveraged and inverse products. Roberts said continued product innovation and cross-border investment will sustain ETP market growth in the coming years.
Jean-Francois Mesnard-Sense, HKEX’s head of exchange-traded products, noted tech-themed ETFs fueled strong growth this year. He added that inflows through the southbound channel of Stock Connect also supported the market. Stock Connect links HKEX with the Shanghai and Shenzhen exchanges.
Currently, nearly 300 ETFs qualify for Stock Connect, including 273 northbound Chinese mainland funds and 17 southbound Hong Kong funds. Lu Wenjun, deputy director of Shenzhen Stock Exchange’s international cooperation department, said the program makes the market more accessible for global investors.
He also emphasized that Hong Kong continues to serve as a bridge between the mainland and global capital. The city has also expanded financial ties with the Middle East. Last October, the SAB Invest Hang Seng Hong Kong ETF listed on Saudi Exchange (Tadawul). This fund provides Saudi investors direct access to Hong Kong and mainland markets.
Rosita Lee, CEO of Hang Seng Investment Management, said the listing offers convenient solutions for Middle Eastern investors seeking Chinese market exposure. She added that these collaborations demonstrate Hong Kong’s ability to introduce its investment products globally. ETP market growth in Hong Kong shows strong momentum, innovation, and expanding international connectivity.
