Hong Kong lists eight ETFs to tap Chinese demand for overseas assets

By Reuters News

By Summer Zhen and Jiaxing Li

HONG KONG, Sept 28 (Reuters) - Eight exchange-traded funds offering exposure to South Korean chipmakers, US tech firms and Malaysian large caps debuted in Hong Kong on Monday, as the city rushes to tap Chinese capital seeking exposure to global markets.

The listing boom came after Beijing broadened authorized channels for mainland investors to access foreign assets, as weak domestic-market performance has fuelled demand for diversification and added to capital-outflow pressures.

China's financial regulator last month allowed mainland insurance firms to invest in Hong Kong-listed ETFs through the Southbound Stock Connect scheme, opening a new route for the sector to bolster investment returns.

These ETFs track Hong Kong Exchanges and Clearing's cross-market indices, with most offering exposure to both Hong Kong and overseas markets.

"We are building an ecosystem that enables global investors to access the best opportunities of this region and beyond, developing an index business is very much part of this," said Bonnie Chan, HKEX's chief executive, at the listing ceremony on Monday.

The bourse will continue to vigorously expand its index business, she added.

China's 10-year government bond yield is among the lowest of major global peers, while the benchmark CSI 300 Index .CSI000300 has fallen about 4% this year even as several major global equity markets have hit record highs.

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