ETFs
Mainland China-Hong Kong Connect ETF marks two years of deepening market integration, expansion expected to boost investment options and liquidity
GUANGZHOU, China, July 8, 2024 /PRNewswire/ — On July 4, the ETF Connect program, which facilitated two-way capital flows between mainland China and Hong Kong for eligible ETFs, celebrated its second anniversary. Over the past two years, the program has strengthened its position by deepening the integration of the two capital markets, with the number of eligible ETFs increasing from 87 to 151 since its launch and the monthly Northbound trading volume increasing from $55 million to $2.98 billion in June this year.
E Fund ETF Connect Eligible Products
According to the Hong Kong Stock Exchange, there are currently 84 eligible ETFs listed on the Shanghai Stock Exchange, 57 listed on the Shenzhen Stock Exchange and 10 listed on the Hong Kong Stock Exchange. Among them, E Fund Management (“E Fund”), the largest fund manager in China, has a total of 14 ETFs, covering a variety of indices, including broad-based indices such as the CSI 300 Index and the STAR 50 Index, thematic indices such as the CSI Artificial Intelligence Index and strategic indices such as the CSI Dividend Index. In addition, the average management fee of these offerings was less than 0.3% per annum, highlighting E Fund’s commitment to enabling overseas investors to diversify their assets across the Hong Kong and mainland Chinese markets in an efficient and cost-effective manner.
The program is expected to undergo a significant expansion on July 22. This expansion is expected to provide offshore investors seeking exposure to the A-share capital market with enhanced investment choices, while increasing the liquidity and trading activity of the ETFs involved.
About E Fund
Founded in 2001, E Fund Management Co., Ltd. (“E Fund”) is a leading global fund manager in China with nearly RMB 3.3 trillion (US$454 billion) under management. It provides investment solutions to onshore and offshore clients, helping them achieve long-term sustainable investment performance. E Fund’s client base includes both individuals and institutions, ranging from central banks, sovereign wealth funds, social security funds, pension funds, insurance and reinsurance companies, to corporates and banks. It is a pioneer and leading practitioner of responsible investment in China and is widely recognized as one of the most trusted and outstanding Chinese asset managers.
Note: As of June 30, 2024. Assets under management include subsidiaries. Source: PBoC, Wind.
SOURCE E Fund Management