China’s financial regulator has allowed mainland insurance funds to invest in Hong Kong-listed exchange-traded funds through the Southbound Stock Connect scheme, Hong Kong Exchanges and Clearing (HKEX) said on Tuesday.
The bourse operator said the move would support the long-term growth of the cross-border market access programme.
HKEX CEO Bonnie Chan welcomed the announcement by the National Financial Regulatory Administration, calling it “a significant development” for Stock Connect.
The Stock Connect programme is a mutual market access scheme that allows investors in Hong Kong and mainland China to trade eligible securities in each other’s markets.
The exchange operator said trading volumes have grown since ETFs were added to Stock Connect in 2022.
Reuters
