Expansion of China-Hong Kong ETF Connect Program Boosts Tech Investment

On July 12th, it was announced that 91 additional ETFs will be added to the Mainland China-Hong Kong ETF Connect Program, effective July 22nd. This brings the total to 241 ETFs, with E Fund Management being the largest manager. The addition enhances opportunities for tech investments, particularly in AI and cloud computing.

In a significant announcement on July 12th, it was revealed that 91 more ETFs would be incorporated into the Mainland China-Hong Kong ETF Connect Program starting July 22nd. This expansion brings the total number of ETFs in the program to 241, with E Fund Management (E Fund) handling 19 of them. The program aims to meet the rising demand from foreign investors for technological investment opportunities, with the electronics sector attracting northbound fund inflows of US$1.58 billion in the second quarter.

The expansion also makes more than 20 thematic ETFs available, particularly benefiting offshore investors interested in tech innovation. Among these are three from E Fund: the E Fund CSI Artificial Intelligence Thematic ETF, the E Fund CSI Cloud Computing & Big Data Index ETF, and the E Fund CSI Technology 50 Index ETF.

The CSI Technology 50 index provides exposure to 50 large companies listed on the Shanghai and Shenzhen Stock Exchange, heavily focusing on information technology and communication services. The other two indexes cover the full span of the AI value chain in China, encompassing infrastructure, models and platforms, applications, and services. E Fund's ETFs, particularly those focused on AI and cloud computing, are leading options in the market, boasting substantial net assets.

(With inputs from agencies.)