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Cheryl Arcibal

China’s financial regulator has encouraged mainland insurers to buy Hong Kong-listed exchange-traded funds (ETFs), an initiative that is poised to further boost the city’s standing as an international finance centre.
The National Financial Regulatory Administration (NFRA) voiced support on Tuesday for mainland insurance funds investing in ETFs through schemes like Stock Connect, which allows cross-border trading between mainland and Hong Kong financial markets.
The announcement was made during a meeting between senior NFRA and Hong Kong officials in Beijing regarding efforts to promote the coordinated development of mainland and Hong Kong capital markets.
The meeting was attended by Hong Kong’s Secretary for Financial Services and the Treasury Christopher Hui Ching-yu, Securities and Futures Commission Executive Director of Investment Products Elisa Ng, and Hong Kong Exchanges and Clearing CEO Bonnie Chan Yiting, as well as Xiao Yuanqi, a vice-minister at the NFRA.
“Enabling mainland insurance funds to invest in Hong Kong-listed ETFs via the Stock Connect is a key step in deepening market connectivity between the two places, and it brings new momentum to Hong Kong’s asset management industry,” Hui said.
“As the range of ETF products continues to expand, from traditional index funds to active funds and thematic products, investors can make more targeted allocations according to different risk appetites and return objectives,” he added.
“We will actively promote the continued development of the local ETF ecosystem to meet investors’ growing demand for diversified asset allocation.”
The initiative is likely to increase southbound net inflows from the mainland to the Hong Kong market, which surged to a one-month high of HK$14 billion (US$1.78 billion) on Tuesday.
The average daily turnover of ETFs in Hong Kong reached HK$40.6 billion in the first seven months of 2026, up 22 per cent from a year earlier, according to Hong Kong stock exchange data. Hong Kong ETFs track stocks listed on the city’s bourse.

Southbound Stock Connect is a mutual market access programme that allows qualified investors on the mainland to trade and invest in eligible shares listed on the Hong Kong stock exchange.
Operating through links like the Shanghai-Hong Kong and Shenzhen-Hong Kong programmes, it serves as a primary liquidity source for Hong Kong equities and an offshore investment channel for mainland capital.
Mainland insurance companies held total assets of 41.31 trillion yuan (US$6.1 trillion) at the end of last year, according to government statistics.
Hong Kong Chief Executive John Lee Ka-chiu thanked the central government and the NFRA for their support for Hong Kong’s capital markets.
“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,” Lee said.
The policy would further facilitate mainland insurance companies diversifying their asset allocations via Hong Kong, while promoting the development of the local ETF market and strengthening its ecosystem, Lee added.
Hong Kong Financial Secretary Paul Chan Mo-po said the initiative was a “win-win” 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,” Chan said.


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Beijing urges mainland insurers to invest in Hong Kong-listed ETFs

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Hong Kong’s status as global financial centre receives a boost as China’s financial regulator touts city’s exchange-traded funds


Hong Kong’s status as global financial centre receives a boost as China’s financial regulator touts city’s exchange-traded funds.


Beijing urges mainland insurers to invest in Hong Kong-listed ETFs

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Hong Kong’s status as global financial centre receives a boost as China’s financial regulator touts city’s exchange-traded funds

Hong Kong’s status as global financial centre receives a boost as China’s financial regulator touts city’s exchange-traded funds