The Secretary for Financial Services and the Treasury, Mr Christopher Hui, together with the Executive Director of Investment Products of the Securities and Futures Commission, Ms Elisa Ng, and the Chief Executive Officer of Hong Kong Exchanges and Clearing Limited, Ms Bonnie Chan, visited the National Financial Regulatory Administration (NFRA) today (August 18) and met with its Vice Minister, Mr Xiao Yuanqi, to discuss measures to further promote the co-ordinated development of the Mainland and Hong Kong capital markets. At the same time, the NFRA announced that it will actively support Mainland insurance funds to participate in mutual access schemes between the Mainland and Hong Kong financial markets and support Mainland insurance institutions to invest in exchange-traded funds (ETFs) in Hong Kong through Stock Connect. The Hong Kong Special Administrative Region (HKSAR) Government warmly welcomes this measure.

     The Chief Executive, Mr John Lee, said, "I sincerely thank the Central People's Government and the NFRA for their support. The National 15th Five-Year Plan clearly supports Hong Kong in consolidating and enhancing its status as an international financial centre, strengthening its role as a global offshore Renminbi business hub, an international asset and wealth management centre, and an international risk management centre. Building on the mature experience of Mainland insurance funds investing in Hong Kong's stock market through Stock Connect, the policy measures announced further facilitate Mainland insurance companies in diversifying their asset allocation via Hong Kong, while promoting the development of the local ETF market and strengthening its ecosystem. The measures represent the strong support of our country for the development of Hong Kong's capital market and asset management industry, and are of profound significance. The HKSAR Government will continue to leverage Hong Kong's unique advantage of being closely connected with the Mainland and the world under the 'one country, two systems' principle, further enhancing the mutual access mechanism between Hong Kong and the Mainland as well as working closely with the Mainland regulators to deepen market co-operation of the two markets. The HKSAR Government is pressing ahead at full speed with the formulation of Hong Kong's First Five-Year Plan, and will spare no effort in taking forward the preparatory work to seize the opportunities presented by our country's development, serve our country's high-level financial opening up, and better integrate into and contribute to the overall national development."

     The Financial Secretary, Mr Paul Chan, said, "Enabling Mainland insurance funds to invest in ETFs in Hong Kong through Stock Connect is a win-win initiative with benefits on multiple fronts. It will not only provide Mainland insurance companies with broader and more diversified investment channels, but also drive the development of the market of exchange-traded products in Hong Kong, further deepening the connectivity and concerted development of the two capital markets. In recent years, we have been actively promoting the development of the market of exchange-traded products, including nurturing and expanding innovative products such as active ETFs, and encouraging overseas ETFs to seek cross-border listings in Hong Kong. The trading volume of exchange-traded products has repeatedly reached new highs; the average daily turnover nearly doubled year on year in 2025, and it further increased by over 25 per cent year on year in the first half of this year, making Hong Kong one of the leading hubs in the region for relevant products. With the strong support of the relevant Central Authorities, ETFs were included in Stock Connect in 2022. Their trading scale has grown significantly in the past few years, with the average daily turnover in the first half of this year already about 12 times of that in the year when the initiative was launched. We will continue to join hands with the financial regulators and market stakeholders to expand and enhance the competitiveness of this market, opening up more new channels for asset allocation and new investment opportunities for investors from both the Mainland and overseas."

     To optimise the insurance asset allocation structure, Mainland insurance funds will be allowed to invest in ETFs included under the Southbound trading of Stock Connect, supporting the development of Hong Kong's financial market.

Ends/Tuesday, August 18, 2026
Issued at HKT 17:15

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