China Expands Southbound ETF Connect With Two CSOP Funds

China’s Shanghai and Shenzhen stock exchanges have announced the addition of 10 ETFs to Southbound ETF Connect, expanding the program from 31 to 41 eligible products effective November 9, 2026. The additions include two existing CSOP ETFs: the CSOP Nomura FTSE HK-Japan Equity Cash Flow Focus Index ETF (3535.HK) and the CSOP FTSE Asia Tech and Dividend Index ETF (3473.HK). The former provides exposure to 30 Hong Kong-listed and 50 Japan-listed companies selected for strong cash flows and dividend yields, marking the first inclusion of a CSOP ETF with Japanese exposure. The latter combines 23 high-dividend Hong Kong stocks with up to 20 technology companies across Asia. Both strategies cap non-Hong Kong exposure at 35%. The expansion comes as Southbound ETF Connect's average daily turnover exceeded HKD4.8 billion year-to-date, up 15% year-over-year, highlighting growing cross-border ETF activity.