According to Odaily, the Hong Kong Securities and Futures Commission (SFC) has issued a circular allowing SFC-approved exchange-traded funds (ETFs) that use a linked fund structure to invest in overseas listed ETFs from different markets, including actively managed ETFs, under certain conditions. The move is aimed at simplifying regulations applicable to linked ETFs, which will save costs for ETF issuers and provide flexibility, as well as broaden investment options for investors while ensuring an appropriate level of investor protection.
The Executive Director of the Investment Products Division of the Hong Kong SFC, Ms. Choi Fung Yee, stated that this move will also enhance Hong Kong's competitiveness in attracting overseas ETFs and consolidate its position as a leading asset management hub. The SFC's decision to allow investment in overseas ETFs is seen as a significant step in further opening up Hong Kong's financial markets and providing more diverse investment opportunities for investors.