Hong Kong Stock Exchange Advances Virtual Asset Market with New Initiatives

Hong Kong Stock Exchange Sees Significant Growth in Virtual Asset Sector for 2024

According to a recent report by PANews, the Hong Kong Stock Exchange (HKEX) has highlighted remarkable growth within the virtual asset sector in its 2024 review. The expansion in this area is reflected in various key performance indicators, particularly in the market for exchange-traded products (ETPs).

Expansion of Exchange-Traded Products

As of the end of November 2023, the average daily trading volume of ETPs reached approximately 18.7 billion yuan. This represents a notable 34% increase compared to the same period last year. The introduction of innovative financial instruments has contributed to this growth.

• First Covered Call Options ETF: This year marked the listing of Hong Kong's first covered call options ETF, enhancing the variety of ETP products available in the market.
• Asia's First Virtual Asset Spot ETF: The launch of Asia's first virtual asset spot ETF further demonstrates Hong Kong's commitment to maintaining a leading position in this evolving market.
• Increased Listings: A total of 36 new ETFs were listed, reflecting the growing interest and participation in the ETP market.

Digitization and Automation Initiatives

To foster further advancement in the ETP sector, the HKEX has announced plans to digitize and automate the physical subscription and redemption mechanism. This shift aims to enhance market efficiency, streamline operations, and stimulate continued growth in secondary market activities.

Introduction of the Virtual Asset Index Series

In response to the surging interest in digital currencies, the HKEX has introduced the Hong Kong Stock Exchange Virtual Asset Index Series. This series provides reliable benchmark prices for the rapidly emerging asset class of virtual assets. By offering this essential tool, the HKEX is supportive of Hong Kong's development as a prominent digital asset hub.

Conclusion

The developments highlighted by the Hong Kong Stock Exchange not only showcase the growth in the virtual asset sector but also underline the commitment of the HKEX to innovate and meet the evolving needs of investors. As the exchange continues to enhance its offerings and improve market mechanisms, Hong Kong solidifies its position as a leading player in the global virtual asset landscape.