Hong Kong is already the world’s fourth-largest market for exchange-traded products, and the rapid growth in trading is set to continue, director says
Investor appetite for artificial intelligence and semiconductor plays will continue to drive fast growth in Hong Kong’s exchange-traded products (ETP) market in the second half of the year, strengthening the city’s wealth management industry, according to a director of Hong Kong Exchanges and Clearing (HKEX).
“Hong Kong has already risen to become the fourth largest ETP market worldwide, after reporting a record of rapid development over the past decade,” said Ding Chen, an independent director of HKEX, at a financial summit on Thursday.
Trading in the more than 200 ETPs listed on the stock exchange accounted for 17 per cent of total turnover in the first half of the year, up from 6.2 per cent a decade ago, according to Ding, who is also CEO of CSOP Asset Management, the largest ETP issuer in Hong Kong with a 39 per cent market share.
The ETPs – which include exchange-traded funds and leverage products that track the performance of stocks, indices, or other asset classes – had an average daily turnover of HK$48.4 billion (US$6.2 billion) in the first half, up 28 per cent from a year earlier, according to exchange data.
helped boost Hong Kong’s total wealth management assetsto a record high of HK$42.2 trillion last year, with new capital inflows doubling, Ding said, citing data from the Securities and Futures Commission (SFC) announced earlier this month.
“International investors represent 54 per cent of such inflow, indicating Hong Kong’s status as an international wealth management centre has been on the rise,” she said.
AI, semiconductor and robotics stocks in mainland China, South Korea and Japan, Ding said, adding that the trend was expected to continue in the second half.