🧠 Food for thought

Implications, context, and why it matters.

Mainland access via Southbound Stock Connect remains unclear and may cap demand

• Approval does not ensure Southbound Stock Connect inclusion (a cross-border trading link that lets qualified mainland Chinese investors buy Hong Kong-listed securities via domestic brokers) 1.
• Among Northbound-eligible onshore ETFs (the reverse channel that lets Hong Kong and international investors buy mainland-listed securities), 22 come from China Asset Management Co., yet its Hong Kong crypto ETFs are not on the Southbound list 2.
• ChinaAMC runs six-month eligibility reviews for Northbound ETFs (official review cycles to add products to the connect lists) 2, so mainland access for this Solana ETF may take months to resolve.
• Without Southbound access, the ETF would rely on Hong Kong retail buyers and overseas investors. ChinaAMC held renminbi (RMB) 678 billion in ETF assets under management (AUM) as of Sept 30, 2024 2.

Hong Kong brokers can stand out with multi-currency crypto ETF access

• The Solana ETF trades in three currencies, Hong Kong dollar (HKD), renminbi (RMB) and US dollar (USD) 3. This forces a foreign exchange (FX) choice alongside crypto risk.
• Retail brokers and online platforms can ease this with currency-hedged interfaces (features that automatically offset FX swings) or auto currency picks tied to a client’s base currency.
• ChinaAMC already runs spot bitcoin and ether ETFs in Hong Kong, so supported brokers can add Solana fast and reach clients seeking diversified crypto exposure beyond the two leading tokens 3.
• Fintech apps that allow quick switching between the three currency counters (separate listings of the same ETF in different trading currencies) could draw cross-border users, currency traders hunting arbitrage across HKD, RMB and USD.