Hong Kong ETFs attracted HKD 52.8 billion in net inflows over the course of 2025, HKD 14.5 billion of which occurred in the fourth quarter. Although equity ETF flows turned negative after an exceptionally strong third quarter, alternative income‑focused ETFs and single‑stock leveraged and inverse products stood out as the biggest magnets for investor interest in Q4 (Exhibit 1).
Exhibit 1: Flows by Broad Asset Class for Hong Kong ETF Market (HKD Million)
Enticed by their income potential, Hong Kong ETF investors gravitated toward actively managed covered‑call ETFs in Q4 2025. As a result, the bulk of the quarter’s inflows were directed to funds in the alternative strategies category, which attracted HKD 12.5 billion in the fourth quarter and HKD 20 billion for the full year, the highest and second‑highest among all asset classes, respectively. Mirae Asset’s Global X remained the category leader, with the Global X HSCEI Covered Call Active ETF alone receiving over HKD 10 billion of inflows during the quarter.
Single‑stock leveraged and inverse ETFs tied to Asian companies in the AI supply chain, such as SK Hynix and Samsung Electronics, also saw strong demand, while select tech-focused ETFs continued to draw investor interest. CSOP Hang Seng Tech Index ETF garnered over HKD nine billion in inflows during the quarter, the second-most among Hong Kong ETFs. The fund also held nearly 90% of largest assets under the Southbound ETF Connect program at year-end, reflecting mainland Chinese investors’ hunger for tech exposure.
Equity ETFs experienced HKD 3.9 billion of outflows in the fourth quarter, a notable pullback from the third quarter, though they still led full‑year 2025 inflows with HKD 27.3 billion. Greater China Equity ETFs saw the largest outflows in Q4 2025 (Exhibit 2), almost entirely driven by HKD 17.8 billion of redemptions from the Tracker Fund of Hong Kong. Heavy outflows from the ETF contributed to a drop in market share for its manager and Hong Kong’s largest ETF issuer, Hang Seng Investment Management, from 38% to 31% over the course of 2025.
Fixed‑income ETFs bled HKD 418 million, marking a fourth consecutive quarter of redemptions and bringing full‑year outflows to HKD 2.4 billion. Demand for US Treasury ETFs, in particular, softened amid persistent inflation fears and fiscal policy uncertainty.
Exhibit 2: ETF Quarterly Net Flows by Category (HKD Million)
Overall, 2025 marked a sharp rebound in Hong Kong ETF inflows that more than doubled 2024’s net inflows and brought the market back near its 2023 peak. Meanwhile, total assets climbed to HKD 583.3 billion by year‑end, up one‑third from end-2024 and nearly two‑thirds higher than at the end of 2023.
To read more about ETF flows in Hong Kong and other Asia Pacific markets, please visit Asia Pacific ETF Flows – Q4 2025 and Full Year 2025 Review to access the full report.
