Hong Kong’s securities regulator has relaxed rules on the sharing of research with investors on mainland China-listed exchange traded funds that can be accessed by local investors via the Stock Connect schemes.
The Hong Kong-China ETF Connect was launched in July 2022 to provide investors with mutual access to eligible ETFs on mainland China and Hong Kong exchanges. But uptake has been hindered by strict regulations preventing fund firms from promoting their ETFs in the cross-border jurisdiction and restricting distributors from offering ETF product information to investors.
However, Hong Kong’s Securities and Futures Commission has moved towards liberalising some of these restrictions by issuing a circular to intermediaries to set out the conditions under which research reports on eligible ETFs in the ETF Connect could be distributed to end investors.