The Southbound ETF Connect program has expanded, adding six new products to its list.

On October 31, the Shanghai and Shenzhen stock exchanges announced an updated list for the Southbound ETF Connect. Starting November 10, six ETFs listed in Hong Kong will be included in the Stock Connect’s eligible ETF list. This expansion will increase the number of Southbound ETF Connect products from 17 to 23, while the total number of ETFs under the ETF Connect program will rise from 265 to 271.

Industry experts highlight the Southbound ETF Connect as a key channel for cross-market investment, offering significant advantages. With further integration between markets, the program is expected to grow in both product variety and structural diversity.

**ETF Connect Continues Expansion** According to the latest disclosures from the Shanghai and Shenzhen exchanges, six Hong Kong-listed ETFs will be added to the Southbound ETF Connect list on November 10.

The newly included ETFs come from two institutions: - **CSOP Asset Management** contributes five ETFs: - CSOP Hang Seng Biotechnology ETF - CSOP FTSE East-West Equity Select ETF - CSOP Hang Seng Hong Kong-US Technology ETF - ICBC CSOP S&P China New Economy ETF - CSOP MSCI Hong Kong Connect Select ETF - **China Merchants Securities Asset Management (HK)** adds one ETF: - China Merchants Hang Seng Tech Index ETF

This expansion significantly broadens investment options under the Southbound ETF Connect. Notably, the updated list introduces ETFs with exposure to non-Hong Kong assets for the first time, including the CSOP FTSE East-West Equity Select ETF and the CSOP Hang Seng Hong Kong-US Technology ETF.

The CSOP FTSE East-West Equity Select ETF tracks the top 23 high-dividend Hong Kong-listed stocks eligible for Southbound trading, along with the top 100 large-cap U.S. stocks ranked by free cash flow yield. Meanwhile, the CSOP Hang Seng Hong Kong-US Technology ETF follows leading tech companies listed in Hong Kong and the U.S., including the "Magnificent Seven" (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla).

**Southbound ETF Connect Sees Strong Trading Activity** Since its launch in July 2022, the ETF Connect program has seen robust trading activity.

In April 2024, the Hong Kong Exchanges and Clearing Limited (HKEX) relaxed eligibility criteria for Southbound ETFs, reducing the minimum asset size requirement from HKD 1.7 billion to HKD 550 million and lowering the Hong Kong stock proportion threshold from 90% to 60%. These changes have enhanced investment flexibility for mainland investors.

Data from HKEX shows that from early 2025 to the end of Q3, the average daily turnover for Southbound ETF Connect reached HKD 4.2 billion, a 128% year-on-year increase.

According to the Central Clearing and Settlement System (CCASS), the CSOP Hang Seng Tech Index ETF remains the most popular product under the Southbound ETF Connect, accounting for 90% of total holdings.

CSOP highlights the advantages of the Southbound ETF Connect, including extended trading hours (allowing investors to react to market changes after A-share market close), T+0 settlement, no price limits, ample trading quotas, and lower premiums due to a mature market-making system. With ongoing market integration, the program is poised for further growth in product diversity and structural innovation.