SFC welcomes NFRA support for Mainland insurers to invest in HK ETFs under Stock Connect, aiming to deepen financial connectivity and strengthen HK's asset management hub status.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Regulatory Announcement on Insurance Fund Access
On August 18, 2026, the Securities and Futures Commission ("SFC") welcomed the National Financial Regulatory Administration ("NFRA") announcement supporting Mainland insurance funds to participate in Mainland-Hong Kong mutual market access schemes and invest in Hong Kong exchange-traded funds ("ETFs") under Stock Connect. This policy enriches offshore asset allocation options for Mainland insurers and reflects NFRA's support for deepening financial connectivity.
SFC Leadership Perspectives on Market Connectivity
Dr Kelvin Wong, SFC Chairman, thanked the NFRA for supporting Hong Kong's capital market development and bilateral financial connectivity. He stated the policy provides diversified overseas asset allocation options for Mainland insurers and demonstrates the Nation's determination to advance high-quality financial liberalisation. Ms Julia Leung, SFC CEO, described the policy as an important initiative bringing development opportunities to Hong Kong's asset management industry. She noted it strengthens the capacity to serve Mainland institutional investors and facilitates medium- and long-term funds, consolidating Hong Kong's position as a leading asset and wealth management hub.
Market Statistics and Bilateral Engagement
Earlier today, Ms Elisa Ng, SFC Executive Director of Investment Products, joined a Hong Kong delegation led by the Honourable Christopher Hui, Secretary for Financial Services and the Treasury of the HKSAR Government, in Beijing for a meeting with Mr Xiao Yuanqi, Vice Minister of NFRA, to discuss coordinated capital market development. Currently, 31 Hong Kong ETFs are eligible for southbound trading under Stock Connect, with a total market capitalisation of $343.6 billion as of 31 July 2026. Between January and July 2026, these ETFs' total turnover under southbound trading grew year-on-year by 59% to reach $780.7 billion, representing about 7% of their total turnover.
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