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

BEIJING, 21 AUGUST 2026 —

Ping An Insurance (Group) Co Ltd, China’s largest insurer by market capitalisation, plans to invest in Hong Kong-listed exchange-traded funds (ETFs) after Beijing permitted mainland insurance funds to buy them via cross-border Stock Connect channels.

The green light came on Tuesday from the National Financial Regulatory Administration, which endorsed insurance funds using Stock Connect to buy ETFs. Average daily ETF turnover in Hong Kong reached HK$40.6 billion in the first seven months of 2026, up 22% from a year earlier, according to Hong Kong stock exchange data.

Kenny Tang Sing-hing, chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators, said Hong Kong ETFs can give mainland insurers access to overseas assets and thematic strategies. “This can enrich mainland insurers’ investment instruments and strategies, potentially boosting returns without them having to rely solely on Hong Kong or mainland markets,” he said.

Because insurance capital is typically long-term and stable, he added, the benefit for Hong Kong’s ETF market is “even more obvious” as it helps reduce volatility.

Ping An executives played down concerns over Beijing’s recent tightening of cross-border rules. Xie Yonglin, executive director, president and co-CEO, said the current tax policy does not apply to domestic insurance income and that Ping An’s overseas policy business is small. “Overall impact is negligible,” he said.

Beijing has increased scrutiny of wealthy families’ use of offshore insurance and wealth-management products in recent months, including a 20% tax on gains from offshore policies introduced earlier this month. That tax would lower returns on Hong Kong policies and strengthen the appeal of mainland-issued products, which are usually more restricted but now face fewer capital requirements.

Mainland insurers held total assets of 41.31 trillion yuan at the end of 2025, according to government statistics. Many treat equities as long-term holdings, often for a decade or more. Since early 2025, Beijing has relaxed capital rules to let insurers allocate 30-40% of assets to stocks, up from 10-20%.

Ping An reported a 36% jump in first-half net profit on Thursday, driven by investment income and sales growth. Xie said low interest rates had narrowed margins for banks and other financial firms, but life insurance was entering a “golden era” because it offers long-term guaranteed returns even in such conditions.

For Malaysian fund managers who allocate to Chinese equities, the deepening ETF corridor offers another route to capture Hong Kong-listed China exposure.

Related: Beijing