Hong Kong Stocks Investment｜Why Hong Kong stock ETFs are suitable for most investors?

First half of 2025.Strong Hong Kong stock market, becoming one of the focal points of the global capital market. As the Hong Kong stock market is characterized by a bull market, bull stocks tend to emerge. Statistics show that as of the close of trading on June 13, more than 2,300 Hong Kong main board stocksThere are 146 stocks that are up more than 100% for the year.

Data source: Wind, as of June 13th

Significant changes in the Hong Kong stock market are attracting investors' attention and providing more opportunities for investment allocation. Among them, Hong Kong stock ETFs are gradually becoming a popular choice.

Compared with direct participation in the Hong Kong stock market, investment through ETF products not only has a lower threshold, but also makes it easier to diversify risks. So, what is a Hong Kong stock ETF? And how do we choose the right product for us?

#01

What is a Hong Kong Stock ETF?

Hong Kong Stock ETFs(Traded Open-End Index Fund) is a fund product that tracks an index of the Hong Kong stock market.It seeks to achieve similar return performance to a specific Hong Kong stock index (e.g. Hang Seng Index, Hang Seng Technology Index, etc.) by replicating the composition of the constituent stocks of that index.

#02

Hong Kong Stock ETFs

Why is it suitable for most investors?

01 Flexibility in trading

ETFs can be traded on the secondary market (stock exchange) in the same way as stocks. Investors can buy and sell ETF shares during the opening hours of the stock exchange, and after the transaction, they can see the floating profit and loss inside the position, and some of the ETFs can be traded on T+0, so they can be sold on the same day they are bought.

02 save time and effort

Tracking is related to the index, do not have to pick individual stocks or predict the trend, no need to read financial reports, research individual stocks, etc., bullish on a certain index, industry or sector, etc., focus on the trend and valuation of the related index can be.

03 high clarity

The ETF manager publicly discloses the complete list of positions (including names of constituent stocks, weightings, cash ratios, etc.) before the market opens every day, and investors can check in real time through the stock exchange, the fund company's official website or financial data terminals.

Moreover, the vast majority of ETFs track the index closely using either full replication or sampling replication methods, with positions highly aligned to the index components and a clear and predictable strategy.

04 transaction cost

Transaction Cost Advantage: Stamp duty is exempted for buying and selling Hong Kong stock ETFs on the HKEx, and investors mainly need to pay the transaction commission charged by brokerage firms.

#03

How to choose the right Hong Kong stock ETF?

Different types of ETFs are suitable for different investment objectives and risk preferences.Here are a few possible allocation ideas for a few types of typical investors:

👉 稳健型投资者：优先考虑宽基指数类ETF

Broad-based ETFs such as Tracker Fund and Hang Seng China Enterprises ETF have wide coverage and low volatility, which are suitable for investors seeking long-term steady growth. It is suitable for constructing a portfolio in phases through regular fixing and other means.

👉 成长型投资者：关注科技与行业主题ETF

If investors have strong confidence in specific sectors (e.g. technology, new energy, biomedicine), they can layout structural opportunities through sector ETFs. For example, the Hang Seng Technology ETF covers headline Hong Kong technology companies such as Tencent, Ali and Meituan, which have high growth potential.

👉 收益型投资者：重点关注高股息类ETF

Dividend ETFs such as Hang Seng Dividend ETF and GX Hang Seng High Dividend ETF focus on blue-chip companies with stable dividend yields, and are suitable for investors looking for cash flow returns and reduced portfolio volatility.

👉 进取型投资者：利用杠杆与反向类ETF捕捉市场波动

Leveraged ETFs and inverse ETFs are suitable for experienced investors who can bear higher risks. They are often used for short-term trading or strategy execution when the market trend is clear, but it should be noted that the holding period should be shorter and the risk control should be strict.

Hong Kong stock ETFs offer ordinary investorsA low-cost and efficient channel to invest in Hong Kong stocks, which can be used either as a base asset for a solid allocation or to capture structural markets.

When choosing products, investors should take into account their own risk tolerance, investment cycle and judgment of the Hong Kong stock market to make a reasonable layout.

If you are interested in investing in Hong Kong stocks, please feel free to enquire!