Hong Kong Stock Connect ETF debuts with non-Hong Kong assets for the first time as investment targets.

On the evening of October 31st, the Shanghai and Shenzhen stock exchanges simultaneously announced adjustments to the list of Hong Kong Stock Connect ETFs, adding 6 new ETFs. Public information shows that the products included in the Hong Kong Stock Connect ETF this time are the Southern East Horizon Hang Seng Biotechnology ETF, Southern East Horizon FTSE East West Stock Selection ETF, Southern East Horizon Hang Seng Hong Kong-US Technology ETF, Industrial Bank Southern East Horizon S&P China New Economy Industry ETF, Southern East Horizon MSCI Hong Kong Stock Connect Select ETF, and China Merchants Hang Seng Technology Index ETF. After this adjustment, the number of Hong Kong Stock Connect ETF products increased from 17 to 23. Compared with the existing Hong Kong Stock Connect ETFs, the asset types of the expanded list are more diverse, with investment targets including non-Hong Kong assets for the first time. The Southern East Horizon FTSE East West Stock Selection ETF focuses on the top 23 high dividend stocks listed on the Hong Kong Stock Exchange that qualify for southbound Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect, as well as the top 100 quality large-cap stocks listed on the US stock market ranking by free cash flow yield; the Southern East Horizon Hang Seng Hong Kong-US Technology ETF focuses on qualified Hang Seng Technology Index constituents, as well as stocks of 7 companies listed on the Nasdaq market, including Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. At the same time, during the adjustment of the relevant indices, the allocation of Hong Kong-listed securities and US-listed securities is maintained, with weight limits of 65% and 35% for each market, respectively.