Hong Kong ETF net flows remained positive at HKD 28.6 billion in second-quarter 2026, though moderated from a strong first quarter (Exhibit 1). Total ETF assets reached a new high of HKD 735 billion in second-quarter 2026, up 17% from the first quarter and 48% year over year. ETFs classified as “Other” saw the largest inflows at HKD 24.2 billion due to continued interest in single-stock leveraged and inverse products. Alternative-strategy and real asset ETFs gathered the second and third largest inflows at HKD 8.0 and 5.6 billion, respectively, as investors favored covered-call ETFs and a newly launched gold ETF. Conversely, equity ETF flows reversed to HKD 8.7 billion in outflows from HKD 24.6 billion in inflows in the first quarter, their largest decline since second-quarter 2025.
Exhibit 1:Flows by Broad Asset Class (HKD Billion)
Trading—leveraged/inverse equity ETFs led inflows (Exhibit 2) and were concentrated in CSOP’s 2x daily Samsung Electronics Daily and SK Hynix Daily leveraged products. Together, these two products captured 86% of all Hong Kong ETFs’ net inflows in second-quarter 2026. While they have seen explosive asset growth amid a rally in the share prices of their underlying stocks fueled by the AI frenzy, a sharp AI chip selloff in early July caused the products to tank, serving as a stark reminder of the amplified losses that can come with the use of leverage.
In addition to redemptions from China equity ETFs, the massive shift in equity outflows was largely driven by redemptions from the CSOP Hang Seng Tech Index ETF, which flipped from seeing the largest inflows in first-quarter 2026 to the heaviest redemptions in the second, bleeding HKD 13.8 billion. Driven by inflows in single-stock L&I, gold, and covered-call offerings, CSOP Asset Management continued to widen its lead in ETF assets over other Hong Kong ETF providers. Its market share climbed to 42.3% from 34% in first-quarter 2026.
Exhibit 2: ETF Quarterly Net Flows by Category (HKD Billion)
To read more about ETF flows in Hong Kong, please visit Hong Kong ETF Flows: Q2 2026 Review to access the full report.
