Chinese insurer Ping An eyes Hong Kong ETFs as Beijing greenlights cross-border investment

China's largest insurer, Ping An, is looking into investing in Hong Kong-listed exchange-traded funds (ETFs) as Beijing has approved cross-border investment opportunities, according to company executives. Richard Sheng, secretary of the company's board, stated that allowing mainland insurance funds to invest in Hong Kong ETFs will strengthen the connections between the Hong Kong and mainland capital markets.

The National Financial Regulatory Administration (NFRA) has given its approval for insurance funds to invest in ETFs through the Stock Connect schemes, which facilitate cross-border trading between mainland China and Hong Kong financial markets.

Hong Kong's ETFs offer exposure to non-Hong Kong and non-mainland assets, potentially enriching mainland insurers' investment instruments and strategies. Kenny Tang Sing-hing, chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators, noted that insurance capital from mainland insurers, which tends to be long-term and stable, can help reduce market volatility.

Ping An executives expressed confidence that Beijing's recent tightening of cross-border investment controls would not significantly impact their overseas policy-related business. Ping An reported a 36% growth in first-half net profit on Thursday, driven by investment income and sales growth, and sees the outlook for the insurer as positive despite low-interest rates for the long term.