Hong Kong Exchanges and Clearing Limited: Plans to digitize the subscription and redemption of ETPs in the primary market this year to promote efficiency and reduce costs in the ETP market.

Brian Roberts, Head of Securities Product Development at Hong Kong Exchange (00388), mentioned in an article titled "Building the Foundation for a Successful Hong Kong ETP Ecosystem" that the exchange will optimize market structure, improve trading efficiency, reduce trading costs, and help international issuers enter the ETP market, with plans to further digitize the subscription and redemption mechanism of the ETP primary market by 2025. Roberts stated that Hong Kong has one of the most diverse ETP product ecosystems in Asia. The one-stop trading platform with robust regulatory measures can increase investor choices and ensure sound regulation. He mentioned that the newly launched individual stock leveraged and inverse products are the latest additions to the HKEX's ETP market. With HKEX continuously introducing innovative products, the number of listed ETPs has increased from 146 at the end of 2020 to 194 at the end of 2024. The establishment of new product regulations, inclusion of ETFs in the Shanghai-Hong Kong Stock Connect to enhance connectivity with the mainland, and the introduction of covered warrant and virtual asset ETFs inject more energy into the ETP ecosystem. HKEX believes that there is ample room for development in both individual stock leveraged and inverse products and overall ETP product types, providing more opportunities for investors and consolidating Hong Kong's position as a leading international financial center in Asia and the world.