HKEX introduces new initiative to facilitate development of fixed income ETFS in HONG KONG

31 May, 2021 16:49
source: Singularity Financial

Singularity Financial Hong Kong May 31, 2021 – HKEX introduces new initiative to facilitate development of fixed income ETFS in HONG KONG

Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce 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.

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

  1. The trading tariff of $0.50
  2. The minimum stock settlement fee payable by each Clearing Participant or Clearing Agency Participant for each Exchange Trade1 or crossed Exchange Trade2 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 capitalisation3 and average daily turnover reaching $404 billion and $7.8 billion respectively in the first four months of 2021.

Notes:

  1. Exchange Trade is defined in the Rules of the Exchange as a trade in a CCASS Eligible Security (other than a China Connect Security) either reported to the Exchange by an Exchange Participant or effected on the Exchange
  2. Crossed Exchange Trade is a trade where the buy and sell of an Exchange Trade is handled by the same Exchange Participant
  3. Exclude SPDR Gold Trust