ETFs are listed index funds that track the performance of stocks or bonds, often providing investors with a basket of assets. They differ from mutual funds in that they trade throughout the day like a stock, whereas mutual funds only trade once a day after the market closes.

Hong Kong is now the world’s third biggest ETF market worldwide, trailing mainland China’s market at HK$315.8 billion and far behind the US at HK$1.69 trillion, according to data from the HKEX.

“Connectivity has been critical and will remain critical to the growth of the Hong Kong ETF market,” said Jean-Francois Mesnard-Sense, head of exchange-traded products at HKEX, in a briefing on Friday ahead of the exchange operator’s second ETF Summit on Tuesday, which is expected to draw more than 400 experts.

Global investors have used ETFs as a short cut to access mainland and Hong Kong stocks this year, as the benchmark Hang Seng Index gained 35 per cent in the first nine months, making it one of the world’s best-performing major indices.