Recently, a number of insurance companies have been issued regulatory notices specifying that qualified insurance institutions are permitted to invest in Exchange-Traded Funds (ETFs) traded through the Southbound Trading Link. Such investments will be subject to the same regulatory framework as stocks traded via the Southbound Trading Link, with the new rules taking effect from September 20. Prior to this, insurance funds were able to invest in Hong Kong-listed ETFs through the Qualified Domestic Institutional Investor (QDII) scheme, albeit with certain quota restrictions. With the introduction of these new regulations, insurance funds investing in ETFs via the Southbound Trading Link will no longer be required to utilize QDII quotas. This move not only broadens the investment avenues for mainland insurance funds but also fosters the growth of the Hong Kong ETF market.
