HKEX Insight

Hong Kong’s ETP market has seen explosive growth so far in 2025. Year-to-date (YTD) average daily turnover (ADT) hit HK$37.8 billion as of the end of September, up 146% YoY. As a result, Hong Kong overtook Korea and Japan to become the third largest ETP market in the world measured by turnover.

Two key factors are creating momentum: the increased popularity of tech-themed ETF products – notably flagship Hang Seng Tech Index ETPs, including leveraged and inverse (L&I) products – have significantly contributed to this uptick, as have robust flows into eligible ETFs via Southbound Stock Connect.

Looking more broadly, the Hong Kong ETP market, which includes ETFs as well as L&I Products, ranked first globally in turnover velocity as of September 2025.

Turnover velocity measures how frequently ETPs are traded relative to their assets. Hong Kong’s ETP market previously held the second position globally with a velocity of 9.0 in 2023, rose to first with 10.2 in 2024, and has now further increased to 14.7, reinforcing its global leadership.

 

March 2025 saw the launch of Asia’s first Single-Stock L&I products, giving investors tactical tools to trade international equities like NVIDIA, Tesla and Coinbase during Asian hours.

This was followed in May 2025 by the debut of the world’s first L&I product with Korean stock underlying, Samsung Electronics, also listed in Hong Kong, further expanding the region’s L&I product landscape.

These products have proved especially popular with Asian retail investors. Offering directional exposure to the daily price movements of highly liquid stocks listed on major exchanges, investors may potentially amplify returns or hedge against market downturns through the products, making them attractive for short-term tactical plays and volatility-driven strategies. Collectively, the combined YTD ADT of all Hong Kong-listed L&I products reached HK$3.6 billion at the end of September 2025, up 51% YoY.

Covered call ETFs, first listed in February 2024, are also gaining traction as investors seek income and risk-managed equity exposure. With interest rate cuts on the horizon, high-dividend and covered call ETFs are attracting investors looking for income-focused products amid changing macro conditions. At the end of September 2025, the combined AUM of the six covered call ETFs listed in Hong Kong reached HK$8.6 billion, over 32 times higher YoY, while YTD ADT jumped nearly 77-fold to HK$132.2 million.

On 13 October 2025, the combined daily turnover of all Covered Call ETFs listed in Hong Kong surpassed HK$1 billion for the first time, showing a strong surge in investor interest and growing market recognition of income-generating strategies amid a volatile macro environment.

At the end of September 2025, YTD ADT for ETFs traded on Southbound and Northbound Stock Connect were HK$4.2 billion (YoY growth 128%) and RMB3.2 billion (YoY growth 142%), respectively. Southbound ETF trading reached a record monthly ADT of HK$9.1 billion in August 2025.

290 ETFs are currently eligible for trading via Stock Connect, comprising 273 Mainland China-listed ETFs in the Northbound channel and 17 Hong Kong-listed ETFs in the Southbound channel. With the upcoming addition of new ETFs to both Northbound and Southbound Stock Connect expected in November 2025, the prospects for further momentum in cross-border ETF trading look strong.

At the end of September 2025, 14 tech-themed ETFs are listed in Hong Kong, with a total AUM of HK$120.1 billion (YoY growth 102%), combined YTD ADT of HK$7.4 billion (YoY growth 247%), with YTD net cash inflows totaling HK$29.1 billion. In the biotech space, three ETFs are currently listed, with a combined AUM of HK$3.4 billion, up 123% compared to end of September 2024. These biotech ETFs have recorded HK$1.3 billion in net cash inflows YTD.

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In February 2025, Hong Kong welcomed the cross‑listing of an ETF tracking the Nasdaq 100 index, providing local investors with efficient access to U.S. large‑cap growth and technology exposure during Asian trading hours. This was followed in May by the launch of Asia’s first Saudi Government Sukuk ETF, broadening Hong Kong’s fixed income shelf and strengthening financial ties with the Middle East.

In September 2025, HKEX signed an MOU with Abu Dhabi Securities Exchange (ADX) to strengthen market connectivity between Hong Kong and UAE. These milestones build on the ground-breaking progress achieved by including ETFs in Stock Connect, underscoring Hong Kong’s role as a conduit for cross-border capital flows and an increasingly influential player in the ETF space.

Active ETFs are the global headline in 2025, with US$183 billion of inflows in H1 2025, according to Morningstar, driven by a strong market rebound, robust Q2 earnings and resilient tech performance. Asset managers are increasingly launching active products in Hong Kong, responding to investor demand for outcome-oriented and income-focused strategies.

As of September 2025, there are 31 actively managed ETFs listed on HKEX (compared with 26 at the end of 2024, and one in June 2019), with a combined market capitalisation of approximately HK$23.7 billion, up 143% YoY from HK$9.8 billion in 2024. These products now contribute around HK$232 million to the ETF market’s ADT, representing a 411% increase from HK$45.3 million in the same period last year.

The strong performance seen this year builds on the longer-term story of steady growth and expansion that has made Hong Kong one of leading ETF marketplaces in the world. That performance, plus the trends driving it, will be under the global spotlight at the HKEX ETF Summit on 21 October 2025.

 

 

1. ETP refers to Exchange Traded Products, which includes both Exchange Traded Funds (ETFs) and Leveraged and Inverse Products (LIPs).