The Hong Kong Securities and Futures Commission (SFC) published its Quarterly Report, describing a strong finish to 2024 for Hong Kong’s capital markets, led by higher asset management activity and expanded cross-border market connectivity. The report highlights rapid growth in exchange-traded fund (ETF) trading and inflows, rising Hong Kong-domiciled fund assets, and a 10-year high in southbound Stock Connect net inflows. Average daily ETF turnover rose 35% year-on-year to HKD 18.9 billion, representing 14% of total stock market turnover, while ETFs recorded net inflows of HKD 22.8 billion and the number of ETFs increased 11% to 194. Net inflows into Hong Kong-domiciled funds jumped 88% to HKD 162.9 billion and their assets under management increased 22% to HKD 1.64 trillion. Stock Connect southbound average daily trading increased 55% to HKD 48.2 billion, accounting for more than 18% of market turnover, and southbound net inflows reached a 10-year high of HKD 807.9 billion, with cumulative inflows nearing HKD 3.7 trillion as of end-December. The report also notes three additional virtual asset trading platform licences granted in early 2025, bringing the total to 10, alongside the recently issued “ASPIRe” roadmap setting out 12 initiatives, and reports a modest surplus of HKD 77 million for the last quarter.

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