The Hong Kong exchange traded fund (ETF) market experienced strong growth in 2021 with investors doubling inflows compared to 2020 numbers, reports the Financial Times. In a year where the local stock market felt the effects of China’s wide-reaching regulatory reforms, the 143 ETFs listed in Hong Kong recorded net inflows of $10.3 billion, double the $5.13 billion recorded in the previous year.
This helped total assets in the market increase 9.16% to $55.04 billion at the end of 2021, up from $50.43 billion 12 months earlier. Hong Kong’s ETF industry has managed to expand significantly following years of stagnant growth and during a year in which the major indices tracking the largest stocks listed in the territory plummeted.
Brian Roberts, head of ETFs at the Hong Kong Exchanges and Clearing, said thematic, Hong Kong equities and China fixed income ETFs were among the top three categories that drew the most fund flows throughout the year.