Hong Kong Exchanges ETF market hits record $4.8b in 2025

Hong Kong Exchanges and Clearing (HKEX) said average daily turnover in its exchange-traded fund (ETF) market doubled to a record HK$37.8 billion (US$4.8 billion) in the first nine months of 2025.

The bourse, which operates 225 listed ETFs, noted that investor interest increased from mainland China, Asia, the Middle East, and Europe.

Hong Kong is now the third-largest ETF market worldwide, behind mainland China and the US, according to HKEX data.

Cross-border access has expanded since the 2022 launch of the ETF Connect, which lets international investors trade 273 ETFs listed in Shanghai and Shenzhen, and allows mainland investors to access 17 ETFs listed in Hong Kong.

Mainland investors traded an average of HK$4.2 billion in ETFs per day in Hong Kong in this period, up 128% year-on-year, while international trading of mainland ETFs reached 3.2 billion yuan daily, up 142%.

HKEX added 41 new ETF listings in the first nine months of this year, surpassing last year’s record of 36 additions.

🔗 Source: South China Morning Post

🧠 Food for thought

Implications, context, and why it matters.

ETF turnover surge doesn’t automatically translate to proportional HKEX revenue gains

ETF average daily turnover doubled to HK$37.8 billion. Hong Kong Exchanges and Clearing (HKEX) takes a 0.00565% trading fee per side 1. That works out to about HK$113,000 per HK$1 billion of ETF turnover if both buy and sell are charged. The sum adds up, yet it stays small next to revenue from derivatives, clearing, or listings.
A record 41 ETF listings bring one-off listing fees and annual charges. Stock futures activity can matter more for profit. Stock Futures Tier 1 fees are HK$3.0 per contract per side 2. The fixed charge on both buy and sell can scale with volume.

Wealth platforms can capitalize on income ETF demand from Hong Kong’s upcoming MPF decumulation wave

Hong Kong fintech builders and licensed wealth advisors have an opening. Twenty one income ETFs yield above 4% and saw 7x turnover. This matches the Mandatory Provident Fund (MPF), Hong Kong’s compulsory retirement savings system, entering decumulation. Retirees will draw income from savings as the abolition of MPF offsetting starts in May 2025 3.
The government has a HK$33.2 billion subsidy tied to the offsetting reform 3. MPF contributions are 5% of relevant income, including year end bonuses, capped at HK$30,000 per month 4. Larger MPF balances need structured payout options, so ETF based systematic withdrawal products can help. These tools automate periodic distributions while keeping assets invested.
ETFs are generally not subject to Hong Kong stamp duty, the stock transaction tax 5. Pair them with tax deductible voluntary contributions under MPF rules 4 to build tax efficient products that aim for steady income without eroding principal.