Mainland Chinese insurance firms will soon be permitted to invest in Hong Kong-listed exchange-traded funds (ETFs) through the Stock Connect mechanism, according to China’s primary financial regulator. The initiative aims to reinforce Hong Kong’s status as a key international financial hub.
In an official statement released on Tuesday, the National Financial Regulatory Administration (NFRA) highlighted its commitment to encouraging mainland insurance capital to take part in cross-border financial connect schemes between the two regions.
Hong Kong Chief Executive John Lee Ka-chiu expressed gratitude to the central government and the NFRA. He noted that the policy allows mainland insurers to broaden their portfolio diversification through Hong Kong while simultaneously stimulating the local ETF sector and enriching its overall ecosystem.
Financial Secretary Paul Chan Mo-po described the decision as a mutually beneficial move. He emphasized that while mainland insurers gain access to a wider variety of investment opportunities, Hong Kong will see increased momentum in its exchange-traded products market, strengthening capital integration between both financial systems.
Chan pointed out that activity in exchange-traded products has expanded significantly. Daily trading volume nearly doubled year-on-year in 2025 and climbed an additional 25% or more during the first half of this year, positioning Hong Kong as a dominant regional marketplace for these instruments.
Figures from the Securities and Futures Commission (SFC) show that 31 ETFs currently qualify for southbound trading via Stock Connect, representing a combined market value of HK$343.6 billion as of July. Over the first seven months of the year, southbound turnover for these funds jumped 59% year-on-year to HK$780.7 billion, making up roughly 7% of total ETF trading volume.
Julia Leung Fung-yee, Chief Executive of the SFC, remarked that the expansion creates fresh growth opportunities for the asset management industry. She voiced optimism that the initiative will attract more sustained, long-term capital from the mainland to utilize Hong Kong for global asset allocation, thereby solidifying its reputation as a leading wealth management hub.
Hong Kong Exchanges and Clearing (HKEX) praised the policy as a major milestone for the Stock Connect framework.
HKEX Chief Executive Bonnie Chan Yi-ting noted that the inclusion enhances market liquidity and depth, supporting the long-term evolution of the program while reinforcing Hong Kong’s strategic role as a vital gateway connecting mainland China with international capital markets.
On Tuesday, Bonnie Chan joined a Hong Kong delegation in Beijing, led by Secretary for Financial Services and the Treasury Christopher Hui Ching-yu, to meet with NFRA Vice Minister Xiao Yuanqi. The officials discussed further strategies to enhance mutual capital market integration.