On the morning of July 9, 2025, Asian ETF issuer, CSOP Asset Management Limited (CSOP), hosted the Hong Kong – Korea Capital Markets Conference in Seoul.
Paul Chan, Financial Secretary of the Hong Kong Special Administrative Region (HKSAR) Government, attended and delivered a keynote speech.
CSOP writes that the event gathered over 50 representatives from Korean institutional investors and financial organisations, including government pension funds, banks, insurance companies, and securities firms.
The conference facilitated in-depth discussions on Korea’s latest investment trends and analysed the value and potential of Hong Kong’s market, the firm writes, adding that particular emphasis was placed on Hong Kong’s pivotal role as a “Super Connector” bridging global capital with opportunities in China, which drew significant attention from Korean institutional investors.
Chan, the Financial Secretary, stated in his Keynote Speech that “Building on last year’s 18 per cent increase, the Hong Kong stock market has sustained robust growth with a further 20 per cent rise year-to-date. Trading activity has expanded significantly, with average daily turnover exceeding HKD240 billion in 2024. In the first half of 2025, IPO fundraising surpassed HKD100 billion, already outpacing the total for the entire preceding year and currently ranking first globally. The sustained inflow of capital into Hong Kong’s financial system underscores international investors’ confidence in our market amid the current global landscape.
“As an international financial centre, Hong Kong enjoys unique advantages under the ‘One Country, Two Systems’ framework, serving as a gateway with both the Mainland and the world. These strengths include the free flow of capital, information, talent, and goods, as well as a common law system; financial and commercial regulations aligned with international best practices; and a diverse, inclusive, and cosmopolitan environment. Complemented by our dynamic financial product ecosystem, including Exchange Traded Products, Hong Kong provides global investors with efficient access to Mainland China and the broader Asian markets. We warmly welcome Korean investors to deepen their engagement with Hong Kong’s stock market and look forward to enhancing collaboration with Korean financial institutions and investors to further unlock mutual opportunities.”
Chan also emphasised Hong Kong’s commitment to digital asset development, noting, “We embrace innovation in this sector while implementing proportionate regulation to advance financial technologies that reduce transaction costs, enhance efficiency, and facilitate cross-border trade and payments—ultimately strengthening support for the real economy. Given the parallel efforts by Hong Kong and Korea in fostering digital asset ecosystems, there is significant potential for expanded exchanges and cooperation between our markets.”
Korea Financial Investment Association (KOFIA) President Yu Seok Seo stated in his address: “Over the past three years, Korean investors have consistently traded approximately USD3.5 billion annually in the Hong Kong stock market. As of June 17, 2025, Korean investors have made net investment totalling USD580 million in Hong Kong stocks—making Hong Kong the second-largest destination for Korean investment globally, after the United States. This clearly demonstrates that Korean investors see Hong Kong as the most promising and opportunity-rich market in Asia.”
CSOP CEO Chen Ding said: “Korea’s technological advancement and dynamic economic landscape present strategic opportunities. In today’s global capital markets—defined by volatility and uncertainty—only through embracing technological advancement, promoting cross-border collaboration, and implementing diversified investment strategies can we collectively forge a resilient and prosperous investment future. For Korean investors, Hong Kong’s market stands as the ideal platform for global portfolio allocation.”
Key conference agenda topics:
Leveraging Hong Kong for Global Allocation: Korean investors are diversifying into ASEAN and regional markets, utilizing Hong Kong’s “Super Connector” role to capture opportunities in China investments and RMB assets.
ETF Boom and Cross-Border Strategies: Analysing growth drivers of Korea’s KRW200 trillion ETF market and demand for offshore products like Hong Kong-listed ETFs.
Geopolitical Agility: Mitigating investment risks from geopolitical factors through Hong Kong’s strategic hub status.
AI and Semiconductor Frontiers: Insights into China’s tech evolution and AI investment opportunities amid global supply chain restructuring.
Hong Kong and Korea, alongside other Asian regional markets, are jointly embracing new opportunities—from AI advancement and ETF market growth to emerging market allocation trends. Earlier this year, the debut of DeepSeek bolstered global confidence in AI technology, both in China and worldwide, the firm writes.
“This milestone lifted stock prices of Chinese tech firms, making the Hang Seng TECH Index a market spotlight. As of June 30, 2025, the index has risen 18.7 per cent year-to-date, while the CSOP Hang Seng TECH Index ETF (3033.HK)—the world’s largest ETF tracking the index—reached HKD47.6 billion in AUM on June 24, hitting a five-year high since inception. Korea, home to Samsung Electronics (a global top-tier chip supplier), will play a pivotal role in AI development. Notably, on May 28, CSOP launched the world’s only pair of Samsung Electronics leveraged and inverse products in Hong Kong, drawing significant attention in Korea’s market.
“Both Korea and Hong Kong, two major Asian markets, are witnessing robust growth in their ETF markets. Korea’s ETF market surpassed KRW200 trillion (HKD1.15 trillion) for the first time in June 2025, with ETFs increasingly becoming a favoured investment vehicle among Korean investors. Hong Kong’s ETF market also repeatedly hit record highs, with the combined AUM of ETFs and leveraged and inverse products approaching nearly HKD600 billion as of June 30, 2025—up 13.8 per cent from the start of the year and standing at a historic peak.
“Against a backdrop of strengthening diversification trends, Asian markets like Korea and Hong Kong stand to benefit. In 2023, CSOP launched the world’s largest Saudi Arabia ETF (2830.HK) in Hong Kong and later cross-listed it on the Shanghai and Shenzhen markets. Through its partner Albilad, the firm launched Saudi Arabia’s first Hong Kong ETF in 2024, which became the Middle East’s largest ETF. These initiatives underscore the potential of emerging markets as a key diversification component for portfolios.
“As an international financial centre, Hong Kong consistently serves as a “Super Connector”, closely linking China with the world. Amid the global expansion of Korean enterprises and institutions and investors’ growing demand for diversified portfolios, Hong Kong is poised to play a critical role in connecting the markets of Mainland China, Hong Kong, and Korea.”
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