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Boosting ETFs in Hong Kong
The Hong Kong authorities are rightly jealous of the territory’s status as Asia’s leading financial and commercial center. Its preeminent role as a regional stock trading hub is a major reason why Hong Kong can resist Beijing’s more heavy-handed interference in its affairs.
So, it’s important that it doesn’t get left behind as rivals compete to create new products and attract investors and issuers. The latest worry is the failure of Exchange Traded Funds (ETFs) to take off in Hong Kong.
A paper published yesterday by a government agency called the Financial Services Development Council (FSDC) calls for looser regulation to rectify the problem.
Other recommendations include improving ETF education, promoting use of ETFs in the Mandatory Provident Fund and broadening the product range through cross-listings, reports AsianInvestor. (paywall)
“Hong Kong’s leadership position within Asia has been overtaken by Tokyo and Shanghai, as they have introduced more innovative products. Actions must be taken to enhance the competitiveness of Hong Kong’s ETF platform,” warned Laura Chan, chairman of the FSDC.
Photo: Steve Webel