China News Service, Hong Kong, August 18. According to the Information Office of the Hong Kong Special Administrative Region Government, Xiao Yuanqi, Deputy Director of the State Financial Supervision and Administration Bureau, met with the Director of the Financial Services and the Treasury Bureau of the Hong Kong Special Administrative Region Government, Mr Hui Ching-yu, and his delegation in Beijing on the 18th. He expressed support for mainland insurance funds to participate in the interconnection of the financial markets between the mainland and Hong Kong, and support for mainland insurance institutions to invest in Hong Kong exchange-traded funds (ETFs) through the Shanghai-Shenzhen-Hong Kong Stock Connect. The Hong Kong SAR government warmly welcomed this measure on the same day.
It is reported that after the above measures are launched, mainland insurance funds can invest in ETFs included in the Hong Kong Stock Connect under the Shanghai-Shenzhen-Hong Kong Stock Connect, optimizing the insurance asset allocation structure and supporting the development of Hong Kong's financial market.
Chief Executive of the Hong Kong Special Administrative Region Li Ka-chiu said that the country clearly supports Hong Kong in consolidating and upgrading 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. The newly announced relevant policies and measures will further facilitate mainland insurance companies to conduct diversified asset allocation through Hong Kong, promote the development of the Hong Kong ETF market and expand the ecosystem.
Li Jiachao pointed out that the Hong Kong SAR government will continue to leverage Hong Kong's advantages in internal and external connectivity under "one country, two systems", continue to optimize the interconnection mechanism between Hong Kong and the mainland, and work closely with mainland regulatory agencies to jointly deepen market cooperation between the two places. The SAR government is working at full speed to formulate Hong Kong's first five-year plan. It will actively seize national development opportunities, serve the country's high-level financial opening to the outside world, and better integrate into and serve the overall development of the country.
Paul Chan, Financial Secretary of the Hong Kong SAR Government, said that opening up mainland insurance funds to invest in Hong Kong ETFs through Shanghai-Shenzhen-Hong Kong Stock Connect will not only provide mainland insurance companies with broader and diversified investment channels, but also drive the development of the Hong Kong exchange-traded product market and further deepen the coordinated development of the capital markets of the two places. The SAR government will continue to work with financial regulators and market stakeholders to make the Hong Kong market bigger and more competitive, and create more new channels for asset allocation and new investment opportunities for domestic and overseas investors.
In recent years, the Hong Kong SAR government has actively promoted the development of the exchange-traded products market, and the trading volume of exchange-traded products has repeatedly hit new highs: its average daily turnover will nearly double year-on-year in 2025, and will increase by more than 25% year-on-year in the first half of this year, making Hong Kong one of the leading hubs for related products in the region. With the support of relevant central ministries and commissions, the Shanghai-Shenzhen-Hong Kong Stock Connect will be included in ETFs in 2022. The average daily trading volume in the first half of 2026 is already about 12 times that of when it was launched that year.
