The Securities and Futures Commission (SFC) of Hong Kong has expressed its welcome for the announcement made today (August 18) by the National Financial Regulatory Administration (NFRA) regarding its active support for mainland insurance funds to participate in the connectivity between the mainland and Hong Kong financial markets. The policy supports mainland insurance institutions in investing in Hong Kong exchange-traded funds (ETFs) through the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect schemes.

This new policy is set to further diversify the options available to mainland insurance institutions for offshore asset allocation through Hong Kong, reflecting the NFRA's backing for the continuous deepening of financial connectivity between the two regions. Dr. Huang Tien-mu, Chairman of the SFC, stated, "We sincerely appreciate the long-standing support from the NFRA for the development of Hong Kong's capital markets and the financial connectivity between the mainland and Hong Kong. This new policy broadens the channels for mainland insurance funds to allocate assets overseas, demonstrating the nation's determination to advance high-level financial opening-up and its support for deepening financial cooperation between the two places. We are confident that this arrangement will further promote the coordinated development of both capital markets."

Ms. Leung Fung-yee, the SFC's Chief Executive Officer, remarked, "This new policy is a significant step in deepening the connectivity between the mainland and Hong Kong financial markets. It will bring more development opportunities to Hong Kong's asset management industry and further enhance the city's ability to serve institutional investors from the mainland. We look forward to this arrangement facilitating more medium and long-term capital from the mainland to use Hong Kong as a platform for international asset allocation, thereby consolidating Hong Kong's status as a leading asset and wealth management hub."

Earlier today, Ms. Ng Ka-lai, Executive Director of the Investment Products Division at the SFC, accompanied a delegation led by Mr. Christopher Hui, Secretary for Financial Services and the Treasury of the Hong Kong Special Administrative Region Government, to meet with Mr. Xiao Yuanqi, Vice Chairman of the NFRA, in Beijing. The meeting was aimed at discussing measures to enhance the coordinated development of the capital markets in the mainland and Hong Kong.

Currently, there are 31 Hong Kong ETFs eligible for southbound trading under the Stock Connect. As of July 31, 2026, their combined market capitalisation reached HK$343.6 billion. Between January and July 2026, the trading turnover of these 31 Hong Kong ETFs via the southbound Stock Connect increased by 59% compared to the same period last year, reaching a total of HK$780.7 billion, which accounted for approximately 7% of their total turnover during that period.