Insurance Funds Can Invest in Stock Connect ETFs, Opening a New Channel for Cross-Border Allocation

Regulatory guidelines on insurance funds investing in Stock Connect ETFs have been further clarified. Several insurers recently received the 'Letter on Clarifying Regulatory Guidelines for Insurance Fund Investment in Stock Connect ETFs.' The letter stipulates that insurance institutions eligible to invest in Stock Connect stocks may also invest in Stock Connect ETFs, subject to the same regulatory provisions applicable to Stock Connect stock investments, effective from September 20. On August 18, the National Financial Regulatory Administration expressed support for mainland insurance institutions investing in Hong Kong Exchange-traded funds via Stock Connect; on September 23, Hong Kong Securities and Futures Commission Executive Director Leung Fong-yi publicly confirmed that mainland insurance funds have officially launched on the ETF Connect. According to Wind data, as of the end of September, there are a total of 31 ETFs included in the Stock Connect scope, with a combined scale of 321.9 billion yuan, all equity-type. Data from the National Financial Regulatory Administration shows that by the end of the second quarter of 2026, the balance of insurance fund utilization exceeded 4 trillion yuan, with 6.39 trillion yuan allocated to stocks and securities investment funds, an increase of 690.7 billion yuan year-to-date. This means that in addition to Stock Connect stocks, eligible insurance funds now have access to a new category of standardized, high-transparency Hong Kong allocation tools, further widening cross-border allocation channels. (Economic Reference News)