ETF Connect expands with two CSOP ETFs
On October 30, Shanghai and Shenzhen stock exchanges announced the expansion list for Southbound ETF Connect, adding 10 ETFs. The adjustment will officially take effect on November 9. In this expansion, two CSOP ETFs were included.
CSOP Southbound ETF Connect ETF List
ETF Name Stock Code Inclusion Status CSOP Nomura FTSE HK-Japan Equity Cash Flow Focus Index ETF 3535.HK Newly included CSOP FTSE Asia Tech and Dividend Index ETF 3473.HK Newly included CSOP FTSE HK-Korea Tech+ Index ETF 3431.HK Already included CSOP Hang Seng Stock Connect High Dividend ETF 3469.HK Already included CSOP FTSE Hong Kong Equity ETF 3443.HK Already included CSOP Hang Seng Biotech ETF 3174.HK Already included CSOP FTSE East-West Equity Select ETF 3441.HK Already included CSOP Hang Seng HK-US TECH ETF 3442.HK Already included CSOP MSCI HK China Connect Select ETF 3432.HK Already included ICBC CSOP S&P New China Sectors ETF 3167.HK Already included CSOP Hang Seng TECH Index ETF 3033.HK Already included CSOP Hang Seng Index ETF 3037.HK Already included
Following the expansion, the number of Southbound ETF Connect products will increase from 31 to 41. The range of asset types covered by ETF Connect will become further diversified, the firm writes.
For the first time, a CSOP product with exposure to the Japanese market has been included in Southbound ETF Connect—CSOP Nomura FTSE HK-Japan Equity Cash Flow Focus Index ETF (3535.HK).
The investment objective of CSOP Nomura FTSE HK-Japan Equity Cash Flow Focus Index ETF (3535.HK) is to achieve investment results, before fees and expenses, that closely correspond to the performance of FTSE ETF Connect HK-Japan Cash Flow Focus Composite Index (net total return version). The index tracked by 3535.HK is designed within the framework of Hong Kong Stock Exchange’s ETF Connect rules and covers Hong Kong-listed securities eligible for Stock Connect, as well as Japan-listed securities.
“These securities are selected for their strong cash-flow characteristics and dividend yields, with the aim of achieving a higher overall free cash flow yield for the index. At index rebalancing, the allocation between Hong Kong- and Japan-listed securities is maintained, with respective weighting caps of 65 per cent and 35 per cent. The number of constituents also remains unchanged, comprising 30 Hong Kong-listed securities and 50 Japan-listed securities.
“The index constituents include popular Chinese and Japanese securities such as China Mobile, CNOOC, Cathay Pacific, Honda, Canon, and SoftBank. By selectively investing in high-quality companies with strong cash flows in Hong Kong and Japanese equity markets, 3535.HK seeks to build a moat against market volatility. Free cash flow reflects not only a company’s financial strength and capacity for business expansion, but also its potential for share buybacks and dividend distributions, providing a buffer in an uncertain environment.”
CSOP FTSE Asia Tech and Dividend Index ETF (3473.HK) aims to provide investment results, before fees and expenses, that closely correspond to the performance of FTSE ETF Connect Asia Tech & Succession Index (net total return version).
The index tracked by 3473.HK selects 23 Hong Kong-listed securities eligible for southbound trading under Stock Connect (“Hong Kong-listed securities”) with high dividend yields, based on total market capitalisation rankings. It also selects up to 20 technology-oriented securities listed in Taiwan, China, Japan, Singapore and/or South Korea (“non-Hong Kong-listed securities”) based on market capitalisation as index constituents.
The index is likewise designed within the framework of Hong Kong Stock Exchange’s ETF Connect rules, the firm writes. At rebalancing, the allocation between Hong Kong-listed securities and non-Hong Kong-listed securities is maintained, with respective weighting caps of 65 per cent and 35 per cent.
For individual constituents, Hong Kong-listed securities are capped at 8 per cent, while non-Hong Kong-listed securities are capped at 15 per cent, in each case based on free-float-adjusted market capitalisation. The index’s top ten constituents include Power Assets Holdings, Hong Kong and China Gas, CLP Holdings, Galaxy Entertainment Group, BOC Hong Kong (Holdings), TSMC, SITC International Holdings, MTR Corporation, Samsung Electronics, and SK hynix.
Year-to-date in 2026, the average daily turnover of Southbound ETF Connect exceeded HKD4.8 billion, representing a year-on-year increase of 15 per cent. CSOP writes that it ranks first in market share within Southbound ETF Connect and also manages the largest number of Southbound ETF Connect ETFs.
Following the relaxation of ETF Connect eligibility thresholds at the end of October last year, CSOP was the first to launch 60/40 Southbound ETF Connect ETFs, which may invest up to 40 per cent of their assets in international markets. CSOP is also the largest issuer of 60/40 ETFs in ETF Connect. CSOP writes that its three 60/40 products—CSOP FTSE East-West Equity Select ETF (3441.HK), CSOP Hang Seng HK-US TECH ETF (3442.HK), and CSOP FTSE HK-Korea Tech+ Index ETF (3431.HK)—have been well received by investors since their inclusion in ETF Connect. Among them, 3441.HK recorded a cumulative gain of more than 30 per cent, ranking first in terms of returns among all Southbound ETF Connect ETFs.
CSOP CEO Ms. Ding Chen says: “CSOP will continue to support Hong Kong in fulfilling its vital roles as a ‘super-connector’ and ‘super value-adder’ by deepening regional connectivity, facilitating two-way capital flows, and expanding access to international markets. With the 2026 Hong Kong Policy Address proposing measures such as expanding ETF Connect and facilitating mainland insurance investment in Hong Kong-listed ETFs, we will actively leverage these supportive policy developments to further contribute to the growth of Hong Kong’s ETF market. As Hong Kong’s largest issuer of ETFs and leveraged and inverse products, we have always placed investors’ needs at the core of our business, offering investors a broader range of diversified, convenient, and forward-looking investment products.”