Review of the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect in the first half of 2026: The daily average turnover of the Shanghai and Shenzhen Stock Connect reached 345.3 billion yuan, more than doubling year-on-year.

On September 7, HKEX released a review of the Shanghai-Shenzhen-Hong Kong Stock Connect for the first half of 2026. Record high trading volumes, expansion of qualified products, and enthusiastic participation from investors have driven continuous activity in the Stock Connect during the first half of 2026. According to data from the Hong Kong Stock Exchange, the average daily transaction amount for northbound trading in the first half of 2026 reached RMB 345.3 billion, more than doubling from the same period last year (RMB 171.3 billion in the first half of 2025) and up 62.6% compared to the entire previous year (RMB 212.4 billion in 2025). In terms of southbound trading, the average daily transaction amount for the first half of 2026 reached HKD 123.1 billion, surpassing the record of HKD 121.1 billion set for the whole of 2025. Trading activity in the technology sector, advanced manufacturing, and innovation-related industries remained robust. In northbound trading, shares in the growing sectors of the A-share market and hard technology industry chainsuch as semiconductors and advanced manufacturingwere actively traded. In the first half of 2026, several related stocks made it into the top ten most actively traded stocks in northbound trading. The primary drivers for southbound trading also came from the technology and innovation-related segments, including artificial intelligence and semiconductor companies that have listed in Hong Kong in recent years. These companies quickly became target investments for southbound funds, reflecting how Hong Kongs evolving tech ecosystem is creating new investment opportunities for mainland Chinese investors, further solidifying Hong Kongs role as an important bridge connecting innovative enterprises with international capital. As of the end of June 2026, the number of eligible A-shares for northbound trading increased from 3,258 at the end of 2025 to 3,503. The newly added shares primarily came from the Shanghai Stock Exchanges STAR Market and the Shenzhen Stock Exchanges ChiNext, covering sectors such as technology hardware, biotechnology, new energy vehicle industry chains, and advanced materials. During the same period, there was also an expansion in southbound trading, with 47 new Hong Kong-listed stocks and 8 ETFs added. The selection of ETFs became more diverse, as the number of qualified northbound ETFs increased to 365 by the end of June 2026, further expanding the range of industries, themes, and indices available for international investors. In the first half of 2026, the average daily transaction amount for northbound ETFs reached RMB 4.8 billion, an increase of 44.1% compared to 2025. At the same time, the average daily transaction amount for southbound ETFs reached HKD 6.2 billion by the end of June 2026, accounting for 6.1% of the average daily transaction amount in Hong Kong's ETP market. Following a review of the eligible scope in May 2026, the number of qualified southbound ETFs increased from 23 at the end of 2025 to 31. New products include "60/40" ETFs, which mainly invest in Hong Kong stocks while allowing for up to 40% allocation to international markets. By the end of June 2026, seven such ETFs were qualified for Stock Connect, encompassing investment themes in technology, artificial intelligence, and global income strategies in the U.S. and South Korean markets. In summary, driven by enthusiastic investor participation, the expansion of the range of qualified products, and the growing popularity and scale of ETF investments, the Shanghai-Shenzhen-Hong Kong Stock Connect set multiple records in the first half of 2026. The Hong Kong Stock Exchange stated that it will continue to work with partners and stakeholders to promote the development of the connectivity ecosystem, creating more opportunities for investors and issuers, and further deepening capital connections between mainland China, Hong Kong, and global markets.