HKEX Insight

Average daily turnover (ADT) of ETFs within Northbound and Southbound Stock Connect reached RMB 5.1 billion and HK$5.8 billion, respectively, for the first seven months of 2026, up 50.0% and 48.7% compared with FY 2025, according to HKEX data.

Since ETFs were added to Stock Connect in July 2022, the breadth of products available through the programme has expanded.

By the end of June 2026, investors could access a combined universe of 396 eligible ETFs across Northbound and Southbound channels, compared with 87 at launch.

This expansion in the product ecosystem reflects a number of different factors, including support for expanding the scope of ETFs in Stock Connect within the China Securities Regulatory Commission’s (CSRC) ‘five measures’ announced in April 2024, and the broadening of eligibility criteria for Stock Connect ETFs in July 2024.

Together with the existing regular review mechanism, these factors have supported the inclusion of a broader range of products through successive review cycles.

For Northbound, technology-themed ETF products within Stock Connect represent a large portion of eligible products, while the range has also broadened into healthcare, consumer and energy sectors.

Northbound ETFs by theme

Southbound ETFs have expanded beyond traditional Hong Kong equity exposures to encompass technology, biotech, dividend and cross-border themes, adding to the range of products available through the channel.

Southbound ETFs by theme

As well as diversification across themes, participation is also broadening across investor segments, with growing engagement from mutual funds, fund-of-funds, wealth management platforms and institutional investors. 

As ETF adoption deepens, income-oriented, active and risk-managed products are gaining traction. These products are designed to support income generation, market exposure and risk-management objectives. This reflects a more mature ETF ecosystem, where products are increasingly designed around investor outcomes rather than exposure alone.

This evolution is also strengthening Hong Kong's role as a connected, multi-asset marketplace. As ETFs become more deeply embedded in portfolio construction, demand extends across complementary tools such as futures and options, enabling investors to access, trade and manage exposure within a single market ecosystem.

The next evolutionary stage for ETFs in Stock Connect may also be supported by broader participation from new investor groups.

In August 2026, the National Financial Regulatory Administration (NFRA) announced that Mainland insurance funds would be permitted to invest in Hong Kong-listed ETFs through Southbound Stock Connect, which may further diversify the Southbound ETF investor base and strengthen Hong Kong's role in cross-border asset allocation.

In sum, the growth in turnover, the expansion of the eligible ETF universe, the rise of more diversified product themes and broader investor participation show how ETF Connect has moved beyond its launch phase. It has become a practical example of HKEX’s role in linking markets, products and investors, while supporting the continued development of Hong Kong as a vibrant international marketplace.

1. Not all 60/40 ETFs are automatically included in Southbound Stock Connect. Although the July 2024 rule changes made these products eligible in principle, individual ETFs must meet eligibility criteria – such as requirements relating to fund size, listing history and benchmark composition - and be approved through periodic review cycles before they can be added to the programme.