ETF Interconnection starts from today's official transaction to 100 billion live water to increase A shares activity

The trading open index fund (ETF) transaction under the interconnection of the Mainland and the Hong Kong capital market was officially launched on July 4th. The qualified investors of the two places can buy 87 ETFs of the two places like buying and selling stocks, including 83 A -share ETFs And 4 Hong Kong stock ETFs.

87 ETF startup transaction

According to the news released by the Hong Kong Exchange, on December 24, 2021, the Hong Kong Stock Exchange, Shanghai Stock Exchange and Shenzhen Stock Exchange announced that they had reached a consensus on the overall plan of the interconnection target of ETF. On May 27, 2022, the Securities Regulatory Commission of the two places jointly issued an announcement that the principle agreed to enter the interconnection. On June 28, the two places decided to include 87 ETFs that meet the conditions into the interconnection mechanism and clearly began to be traded on July 4. This means that qualified investors in the two places can buy 87 ETF fund products traded by local securities companies or brokers to buy and sell markets. The Shanghai -Shenzhen Stock Connect can buy 83 A -share ETFs.

Specifically, 83 A -share ETFs cover the Shanghai Stock Exchange 50ETF, Shanghai Stock Exchange 180ETF, GEM ETF, CSI 300ETF, Biomedical, Semiconductor, New Energy, Biotechnology, Chip, Carbon neutral ETF and other fields. Four Hong Kong stock ETFs are profitable funds, Hang Seng Chinese Enterprises, Southern Hang Seng Technology, and Anshuo Hang Seng Technology. These fund heavy stocks include Tencent, Alibaba, Meituan, Kuaishou, SMIC, etc. Huaxia Fund believes that under the arrangement of the ETF interconnection mechanism, mainland investors can invest in the mainstream ETF products in the Hong Kong market, and can conduct cross -border asset allocation and share the business results of high -quality listed companies in the Hong Kong Stock Exchange; global investors can use Hong Kong to directly invest in the Mainland in the Mainland The market's ETF has expanded the scope of investing in the A -share market and effectively realizing two -way cross -border investment.

In terms of ETF Fund, it is an index fund containing a basket of stocks. If this basket of stocks are a certain industry, the industry ETF, such as pharmaceutical ETF, if a basket of stocks are in front of the market, it is a wide -based ETF, such as for example, for example 50ETF. The current ETF fund of A shares has exceeded five hundred, and there are more and more industries.

Will attract 100 billion live water for A shares

In November 2014, the Shanghai -Hong Kong Stock Connect was first opened under the interconnection mechanism. In December 2016, Shenzhen -Hong Kong Stock Connect was officially launched. In 2017 and 2019, bonds of the two places were opened in both directions. Since then, the Shanghai -Shenzhen -Hong Kong -connected mechanism has continued to improve and optimize, and the scope of transactions has been expanding.

As of now, the total asset size of 83 ETFs is about 637.8 billion yuan, and the market size of the ETF of the mainland stocks is 104 million yuan, accounting for about 61%. According to the preliminary estimation of the E Fund Fund, the ETF interconnection mechanism is for overseas investors, and the current land stock market is expected to be included in more than 80 ETFs in the mainland market, which will exceed 600 billion yuan. The Hong Kong market is expected to be included in the scale of ETFs 360 billion Hong Kong dollars.

At present, the Hong Kong Stock Connect has become the main channel for direct investment in the Hong Kong market in Mainland investors, while Shanghai Stock Connect and Shenzhen Stock Connect have become the main channel for international investors to invest in the mainland A -share market. At present, the total size of overseas investors holds more than 3 trillion yuan, more than 70 % of which are held through the Shanghai -Shenzhen -Hong Kong Connect.

Chengdu Daily Jinguan News Reporter Liu Taishan Editor He Qixie Editor Liu Yonghao

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