Hong Kong and Shanghai witnessed the first cross-listings of exchange traded fund (ETF) on Tuesday, indicating increasingly closer ties between financial markets of the two sides.

The CSOP Huatai-PineBridge CSI Photovoltaic Industry ETF was listed here Tuesday under a Hong Kong-mainland cross-listing scheme that was announced in 2020, according to Hong Kong Exchanges and Clearing Limited (HKEX).

The product invests 90 percent or more of its total net asset in the ETF currently listed on the Shanghai Stock Exchange.

"We warmly welcome these two new ETFs to the market today," HKEX chief executive Nicolas Aguzin said, adding these listings marked an important step forward in the development of cross-boundary ETFs, and served to "deepen the collaboration between Hong Kong and mainland exchanges."

Hong Kong's ETF market has one of the most diverse product offerings in Asia and is being broadened further with growing exposure to the mainland's new economy.

As at May 28, more than 140 Hong Kong-listed ETFs traded over 7.6 billion Hong Kong dollars (nearly 1 billion U.S. dollars) a day, with assets under management at over 400 billion Hong Kong dollars (51.55 billion U.S. dollars).

Aguzin said HKEX will continue to work with mainland exchanges, regulators and market participants to build the fast-growing ETF market, improve mainland-Hong Kong financial connectivity, and strengthen Hong Kong's role as an international financial center.

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