Hong Kong

HKEX Introduces New Initiative to Facilitate Development of Fixed Income ETFs in Hong Kong

Hong Kong Exchanges and Clearing Limited (HKEX) has announced the introduction of two new fee waivers for Hong Kong-listed fixed income ETFs and money market ETFs.

The new initiative is part of HKEX's ongoing commitment to develop Hong Kong into Asia's ETF marketplace through offering greater choice and broadening product diversity, HKEX said in a press release.

“The new fee waivers, which will help investors reduce costs for fixed income ETFs and money market ETF transactions, are HKEX's latest initiative to enhance its ETF market structure and drive liquidity to Hong Kong-listed ETFs,” said Brian Roberts, HKEX's Head of Exchange Traded Products.

“We believe the fee waivers are introduced at an opportune time as there has been a strong increase in investor demand for China fixed income products in recent years.”

Commencing 31 May 2021, the following fees will be waived for transactions of fixed income ETFs and money market ETFs:

  • The trading tariff of HKD0.50.
  • The minimum stock settlement fee payable by each Clearing Participant or Clearing Agency Participant for each Exchange Trade or crossed Exchange Trade cleared and settled through CCASS.

For further details of the new fee waivers, please refer to this circular or visit HKEX ETP webpage.

As of 28 May 2021, there are 29 fixed income and money market ETF trading counters eligible for the fee waivers. Please refer to the full list of Hong Kong-listed fixed income and money market ETFs that are eligible for the fee waivers.

The Hong Kong ETF market is one of the largest in Asia, with market capitalisation and average daily turnover reaching HKD404 billion and HKD7.8 billion respectively in the first four months of 2021, reported HKEX.

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