The National Financial Regulatory Administration supports mainland insurance funds to invest in Hong Kong ETFs through the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connects, deepening the coordinated development of the capital markets in mainland China and Hong Kong.

Hong Kong's Secretary for Financial Services and the Treasury, Hui Ching-yu, today (August 18) visited the National Financial Regulatory Administration along with Executive Director of the Hong Kong Securities and Futures Commission, Wu Jia-li, and CEO of the Hong Kong Stock Exchange, Chen Yiting, to meet with Deputy Director Xiao Yuanqi to discuss further measures to promote the coordinated development of capital markets between the Mainland and Hong Kong. The National Financial Regulatory Administration also announced its active support for Mainland insurance funds to participate in the interconnection of financial markets between the Mainland and Hong Kong, and to support Mainland insurance institutions in investing in ETFs through the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect programs. The Hong Kong Special Administrative Region government warmly welcomes this measure. Hong Kong Chief Executive John Lee Ka-chiu expressed his sincere gratitude to the Central People's Government and the Financial Regulatory Administration for their support. The national "14th Five-Year Plan" clearly supports Hong Kong in consolidating and enhancing its status as an international financial center and strengthening its functions as a global offshore RMB business hub, an international asset and wealth management center, and an international risk management center. Building on the established experience of Mainland insurance funds investing in the Hong Kong stock market through the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect, the announced relevant policy measures further facilitate the diversification of asset allocation by Mainland insurance companies through Hong Kong, promote the development of the local ETF market, and strengthen the local ETF ecosystem. These measures represent the national government's strong support for the development of Hong Kong's capital markets and asset management industry, which is of great significance. The HKSAR government will continue to leverage Hong Kong's advantages under "One Country, Two Systems" to optimize the interconnection mechanisms between Hong Kong and the Mainland, work closely with Mainland regulatory agencies, and deepen cooperation between the two markets. The HKSAR government is rapidly formulating Hong Kong's first five-year plan and will make every effort to complete this work, actively seize national development opportunities, serve the country's high-level financial opening-up, and better integrate into and serve the national development landscape. Hong Kong's Financial Secretary Paul Chan Mo-po stated: "Opening up Mainland insurance funds to invest in Hong Kong ETFs through the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect is a mutually beneficial, win-win measure: it not only provides Mainland insurance companies with broader and more diverse investment channels, but also drives the development of the local exchange-traded product market, further deepening the connectivity and coordinated development of the two capital markets. In recent years, we have actively promoted the development of the exchange-traded product market, including nurturing and expanding actively managed ETFs and encouraging overseas ETFs to list in Hong Kong. The trading volume of exchange-traded products has also hit record highs: by 2025, the average daily trading volume has nearly doubled year-on-year, and in the first half of this year, it has increased by over twenty-five percent compared to the same period last year, making Hong Kong one of the leading hubs for related products in the region. With the strong support of central relevant ministries, the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect introduced ETFs in 2022, and the trading scale has significantly increased over the years. The average daily trading volume in the first half of this year was about twelve times higher than when it was launched. We will continue to work hand in hand with financial regulatory authorities and various market stakeholders to make this market larger and more competitive, creating more new channels for asset allocation and investment opportunities for domestic and overseas investors."