First Active ETF Cross-Listing in Hong Kong
This marks the first active Exchange-Traded Fund (ETF) in Hong Kong’s asset management market. The ETF’s initial issue price is HKD 15 per unit, with a board lot size of 500 units, a maximum annual management fee of 0.7%, and an estimated total expense ratio of 0.85% per annum.
Master-feeder fund structure ETF
The ETF was cross-listed through a master-feeder fund structure, whereby the Hong Kong-listed and Securities & Futures Commission (SFC)-authorized feeder fund invests in the Irish master fund. This arrangement benefits from the streamlined regulatory requirements applicable to eligible ETFs. Through this structure, Hong Kong investors can gain exposure to US income-focused equity allocations in Hong Kong dollars while enjoying the convenience and transparency of trading on local platforms.
Mutual Recognition of Funds (MRF) between Ireland & Hong Kong
Earlier, in May 2025, the SFC and the Central Bank of Ireland signed Mutual Recognition of Funds (MRF) between Ireland and Hong Kong, allowing qualifying public funds in both jurisdictions to be offered cross-border through a simplified process. According to the related circular, a feeder fund may invest in an overseas master fund not authorized by the SFC, provided that the master fund offers investor protection comparable to that of locally authorized funds and has a strong compliance record, transparent investment strategy, and sufficient asset size. The “A HSJPUSINCOME” ETF was launched under this regulatory framework, showcasing Hong Kong’s effective balance between regulatory flexibility and product risk management, and further demonstrating the close connectivity between the two markets.
With the successful listing of the first active ETF in Hong Kong, more products with similar structures are expected to enter the local market, offering investors a broader and more diversified range of asset allocation choices. Looking ahead, by leveraging the Fund Authorisation Simple Track (FASTrack) and various mutual recognition of funds arrangements between the SFC and financial regulators in Mainland China and overseas, Hong Kong is well positioned to further develop in both the active management and cross-border ETF segments, reinforcing its role as a core hub connecting Eastern and Western capital markets.
