China’s financial markets just leveled up! Over 60% more exchange-traded funds (ETFs) are now tradable between the Chinese mainland and Hong Kong via the upgraded 'stock connect' program. This move could shake up global investing – here’s why you should care.
Why ETFs = Financial Superpower?
Imagine buying a slice of 2,760 stocks in one click. That’s the magic of ETFs like cloud computing trackers and rare metals funds now accessible to cross-border investors. With lower costs and smarter risk management, these tools are perfect for both cautious retirees and crypto-level risk-takers.
By the Numbers 
• 2.65T yuan ($364B) in China’s ETF market
• 70+ passive funds beating active managers since 2022
• P/E ratios dropping from 28.1 to 20.08 (iFind Data)
Hong Kong: The Ultimate Bridge 
While only covering half of A-shares, this expansion already represents 91% of mainland market value. New southbound ETFs let mainland investors chase global opportunities, while foreign players get prime access to China’s growth story – all through Hong Kong’s financial gateway.
What’s Next? 
Daily ETF turnover already hit 29.6B yuan last week – nearly double 2022 levels. With enhanced ETFs featuring active management debuting in the program, analysts predict fresh liquidity could revive trading activity that dipped to 5.38% turnover this year.
As one market strategist puts it: 'This isn’t just about stocks – it’s China doubling down on financial globalization.' Will you ride the wave?
Reference(s):
Mainland-HK stock connect with more ETFs critical to financial world
cgtn.com