November 12 marks the 20th anniversary of the launch of Hong Kong’s Tracker Fund. It was the first exchange-traded fund (ETF) to list in the region and the largest initial public offering (IPO) in Asia excluding Japan at the time. It remains the largest and most liquid ETF in the Hong Kong market, and a popular and low-cost vehicle for investors to gain exposure to a broad spectrum of Hong Kong-listed companies.
Product innovations such as this have helped Hong Kong develop into Asia’s leading global financial centre, top the global rankings for IPO funds raised in six of the past 10 years, and offer the broadest range of listed financial products in the region.
Hong Kong’s proximity to, and connection with, mainland China have also been a cornerstone of its success. Hong Kong’s capital markets have reaped the rewards of China’s economic growth over the last three decades.
* First published in the South China Morning Post (13 November 2019)
Image from SCMP.com
