The Shanghai and Shenzhen Stock Exchanges have officially released the expanded list of eligible ETFs under the Southbound Stock Connect program. Two exchange-traded funds managed by E Fund Management (Hong Kong) Limited – the E Fund High Dividend ETF (03483) and the E Fund AI ETF (03489) – have been included in the list. The inclusion is set to take effect on May 6, 2026.

As flagship products of E Fund Hong Kong's "60/40 Series," these ETFs offer investors a straightforward method to gain exposure to core Hong Kong equities while also accessing high-quality global assets. They provide mainland Chinese investors with convenient new options for global asset allocation, further enriching the cross-border investment ecosystem.

The E Fund High Dividend ETF (03483) closely tracks the MSCI Asia Pacific Select High Dividend Yield Index. It is currently the only high-dividend ETF within the Southbound Connect scheme that spans three distinct markets. The index allocates 65% of its core holdings to high-quality blue-chip assets within the Hong Kong Stock Connect, such as companies in the financial and energy sectors known for strong cash flows and stable dividends. The remaining 35% is invested in high-dividend companies within developed markets like Japan and Australia, focusing on sectors such as mining, consumer goods, and industrials. The low correlation between these three markets helps effectively diversify single-market risk and reduce portfolio volatility. Since its base date (August 31, 2016), the index has delivered a cumulative return of 179.60% and achieved positive returns for five consecutive years from 2021 to 2025.

The E Fund AI ETF (03489) closely tracks the FTSE Custom Artificial Intelligence Select Index. It selects 50 core AI-related listed companies from both Hong Kong and U.S. markets, offering high purity in AI exposure and significant weighting in computing power. The ETF provides comprehensive coverage of the global AI supply chain, encompassing computing hardware, algorithms, and applications. The index's largest constituent is the global AI computing leader NVIDIA, with a weighting of 8%, enabling genuine cross-market selection of leading global AI companies. This strategy captures the leading advantages of the U.S. in AI chips and large language models, while also allocating significant weight to Chinese leaders in AI hardware and application sectors. Since its base date (September 16, 2022), the index has achieved an annualized return exceeding 22%.

Since the inclusion of ETFs in the Stock Connect mechanism in 2022, the Southbound ETF Connect has undergone multiple rounds of expansion, with trading activity consistently increasing. In July 2024, the exchanges from both sides lowered the minimum weighting requirement for Hong Kong stocks from 90% to 60%, opening the channel for more structurally diverse global allocation products. In November 2025, the Southbound ETF Connect expanded beyond Hong Kong equities for the first time to include U.S. stock assets. The latest expansion increases the number of eligible ETFs from 23 to 31, further extending asset coverage to markets such as Japan and Australia, thereby better meeting investor demand for diversified investment strategies.

Compared to traditional QDII channels, the Southbound ETF Connect offers advantages such as convenient trading, support for T+0 settlement, and ample quota availability. Mainland investors can participate directly without needing to open overseas brokerage accounts, significantly lowering the barrier to global asset allocation.