China’s National Financial Regulatory Administration said it supports mainland insurance institutions investing in Hong Kong-listed exchange-traded funds through Stock Connect, extending insurers’ investable universe in Hong Kong beyond eligible stocks. The Aug. 18 announcement marks a new step in mainland-Hong Kong market connectivity and gives insurers an alternative to the Qualified Domestic Institutional Investor program, where quota limits had constrained ETF allocations. Hong Kong officials said the measure should help mainland insurers diversify portfolios through Hong Kong while supporting the city’s ETF and broader asset-management markets. Chief Executive John Lee, Financial Secretary Paul Chan and Secretary for Financial Services and the Treasury Christopher Hui said the arrangement would deepen financial links between the two markets and add momentum to Hong Kong’s role as a regional hub for exchange-traded products. SFC Chairman Kelvin Wong said the policy broadens offshore asset-allocation channels for mainland insurance funds and reflects support for further financial opening. The policy builds on earlier rules issued in 2016 and 2017 that allowed insurance funds to participate in Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect equity trading. Since ETFs were added to Stock Connect in 2022, trading activity has increased, with Hong Kong Exchanges and Clearing data showing average daily turnover in January-July 2026 of about HK$5.8 billion for southbound ETFs, up 61% year on year, and about 5.1 billion yuan for northbound ETFs, up 86%. Overall average daily turnover in Hong Kong’s ETF market reached HK$40.6 billion, up 22%, underscoring expectations that mainland insurers could add long-term capital and further improve market depth and liquidity.