Financial Secretary Paul Chan is optimistic about the future growth of Hong Kong’s exchange-traded fund (ETF) market. He believes that the market will continue to expand, solidifying Hong Kong’s position as a global financial center.
During the 25th-anniversary ceremony of the Tracker Fund, Chan highlighted Hong Kong’s emergence as a prominent ETF hub. The city offers a diverse range of ETF products that have attracted numerous issuers over the years.
Originally established during the Asian financial crisis, the Tracker Fund has experienced remarkable growth. Starting with an initial size of over HK$33 billion, the fund has now grown five times larger, with a market capitalization exceeding HK$150 billion.
Chan emphasized the fund’s resilience in overcoming various challenges over the past 25 years. It has gained the trust of local, mainland, and international investors who seek exposure to the constituent stocks of the Hang Seng Index. The Tracker Fund provides investors with a straightforward way to invest in a diversified portfolio of Hong Kong stocks, effectively reducing the risks associated with overconcentration in a cost-efficient manner.
Furthermore, Chan noted that the fund’s global presence is expanding. In addition to its listings on the Hong Kong stock exchange, the Tracker Fund is now listed on the Thai stock exchange and has launched a new ETF on the Saudi stock exchange.
The growth of Hong Kong’s ETF market not only benefits local investors but also enhances the city’s reputation as a financial hub with a wide range of investment opportunities. As Hong Kong continues to attract issuers and investors from around the world, the ETF market is poised for further expansion in the years to come.
