HONG KONG: HKEX Introduces New Initiative to Facilitate Development of Fixed Income ETFS

Wednesday June 2 2021

On 31^st May 2021, Hong Kong Exchanges and Clearing Limited (HKEX) announced 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.

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

• The trading tariff of $0.50
• 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

As of 28^th May 2021, there are 29 fixed income and money market ETF trading counters 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.

Click on the above link for further information.