Hong Kong’s exchange-traded products (ETPs) market has had a breakthrough year, with surging daily turnover propelling it to among the top three in the world. The city’s bourse operator expects continued momentum as the market deepens its connections with global capital through ongoing innovation and expanding cross-border investment.

The local ETP market has seen explosive growth this year, with the year-to-date average daily turnover hitting HK$37.8 billion ($4.86 billion) as of the end of September, according to Hong Kong Exchanges and Clearing (HKEX). This surge has helped the special administrative region overtake South Korea and Japan, making it the third-largest ETP market in the world by turnover.

“Hong Kong’s ETF (exchange-traded fund) market today is one of Asia's most diverse, with over 200 ETFs and leveraged and inverse products listed, from artificial intelligence to biotech,” said Brian Roberts, HKEX’s managing director and head of equities product development, at the HKEX ETF Summit 2025 on Tuesday.

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ETFs are publicly traded investment funds that track the performance of a group of stocks or bonds, allowing investors to earn returns that closely follow the overall market without owning each individual asset. Leveraged and inverse products, on the other hand, are funds that multiply or reverse the movement for more advanced investment strategies.

Roberts said the total market value of assets under management in Hong Kong’s ETF market has doubled over the past decade, growing from around HK$300 billion to HK$650 billion by 2025.

Highlighting the market’s ongoing product innovation and increasing diversity, as well as Hong Kong’s stronger role as a cross-border investment gateway, he said these driving forces would fuel even faster growth going forward.

Hong Kong’s equity market has strengthened its connection with the Chinese mainland market in recent years, with nearly 300 ETFs currently eligible for trading through Stock Connect — the mutual access scheme linking HKEX with the Shanghai and Shenzhen exchanges.

Speaking during a panel discussion at the summit, Lu Wenjun, deputy director of the international cooperation department of the Shenzhen Stock Exchange, said the program can provide a more accessible and friendly environment for global investors, and at the same time enhance the appeal of the Asian market.

Hong Kong has also enhanced financial ties with the Middle East. Last October, the SAB Invest Hang Seng Hong Kong ETF – a fund that tracks the performance of Hong Kong’s benchmark Hang Seng Index – was listed on the Saudi Exchange, or Tadawul. This investment vehicle provides Saudi investors with a direct channel to Hong Kong’s equity market, as well as to the broader mainland market.

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Rosita Lee, director and chief executive officer of Hang Seng Investment Management, said the cooperation is a breakthrough and has provided convenient solutions for Middle Eastern investors who seek more exposure to the Chinese market.

“With this kind of collaboration, we can easily introduce (ETFs) and provide easy market access to local asset owners. And there's no need for them to trade in a different time zone,” she said, adding that it also demonstrates Hong Kong’s ability to introduce its investment stories overseas.

The HKEX ETF Summit brought together over 400 industry leaders, professionals, and institutional and private wealth investors. Panelists discussed a range of topics including emerging frontiers, global market connectivity, and strategies for cash flow generation.

Contact the writer at gabylin@chinadailyhk.com