About ETFs
ETFs in Hong Kong and the United States
Strategically governed by the Securities and Futures Commission (SFC), ETFs are mandated to be listed on the Hong Kong Stock Exchange (HKEX) and adhere to its stringent listing rules. The ETF portfolios must comprise financial instruments recognized by the SFC, with mandatory periodic disclosures of portfolio holdings, net asset value (NAV), performance reports, and related fees. Recently, Hong Kong has been actively promoting the internationalization of its ETF market, fostering the development of cross-border ETF products to attract a global investor base.
Innovatively overseen by the Securities and Exchange Commission (SEC), ETFs are required to list on prominent exchanges such as NYSE and NASDAQ, complying with the Investment Company Act of 1940. US ETFs can diversify across a broad range of asset classes and are obligated to provide regular disclosures of portfolio holdings, NAV, performance reports, and management fees. The US market has been encouraging ETF innovation, introducing various leveraged, inverse, and thematic ETFs, while simultaneously enhancing regulations and risk disclosures for high-risk ETF products.
