Hong Kong and South Korea Explore Mutual ETF Listings

Hong Kong is in talks with South Korea on mutual ETF listings that would allow exchange-traded funds tracking each other’s stock markets, highlighting Hong Kong’s role as a gateway to global capital.

Financial Secretary Paul Chan said about half of stock market capital comes from global institutional investors, with mainland China’s southbound flows and local investors each accounting for around a quarter.

He added that more than 400 companies are in Hong Kong’s IPO pipeline, mainly mainland firms in frontier technology and advanced manufacturing.

Separately, Bank of Korea Governor Rhee Chang-yong said regulators are considering allowing Korean institutions to issue won-denominated stablecoins for cross-border use, as Hong Kong South Korea ETF listings discussions progress.