ETF Connect Program Celebrates Two-Year Milestone with Expanding Opportunities

The ETF Connect Program, enabling capital flows between mainland China and Hong Kong, has celebrated its two-year anniversary with significant growth. Eligible ETFs have increased from 87 to 151, and trading volume has soared. E Fund Management leads with 14 ETFs, providing diverse and cost-effective investment options for foreign investors.

The ETF Connect Program, marking its two-year anniversary on July 4th, has significantly enhanced capital flow integration between mainland China and Hong Kong for eligible ETFs. Since its inception, the number of eligible ETFs has grown from 87 to 151, and monthly Northbound trading volume has surged from US$55 million to US$2.98 billion as of June this year.

According to the Hong Kong Stock Exchange, the current batch of eligible ETFs includes 84 listed on the Shanghai Stock Exchange, 57 on the Shenzhen Stock Exchange, and 10 on the Hong Kong Stock Exchange. E Fund Management Co., Ltd. (''E Fund''), China's largest fund manager, contributes 14 ETFs to this list. These cover a range of indexes including broad-based indexes like the CSI 300 and STAR 50, thematic indexes such as the CSI Artificial Intelligence Index, and strategic indexes like the CSI Dividend Index. Notably, the average management fee for these ETFs is less than 0.3% per annum, highlighting E Fund's commitment to providing efficient and cost-effective investment solutions for foreign investors.

The program is set for further expansion on July 22nd, promising enhanced investment choices for offshore investors seeking exposure to the A-share market. This expansion is expected to boost liquidity and trading activity of related ETFs.

Established in 2001, E Fund Management Co., Ltd. (''E Fund'') manages close to RMB 3.3 trillion (US$454 billion) and offers diverse investment solutions to a wide range of clients. E Fund is a pioneer in responsible investments in China and is renowned for its outstanding asset management services.

(With inputs from agencies.)