ETFs post $8.3b net outflows in Q3

ETF launches accelerated despite weaker overall flows, according to Morningstar.

Hong Kong exchange-traded funds (ETFs) recorded $8.3b in net outflows in the third quarter (Q3) of 2026, reversing from $26.3b in net inflows the previous quarter, according to Morningstar.

Total ETF assets fell quarter on quarter (QoQ) to $647.7b but remained 3% higher year on year.

Equity ETFs drove the outflows, shedding $14.7b, or 60% more than in the previous quarter, largely due to ETFs with Asia ex-Japan exposures.

Assets in the Other category, mainly leveraged and inverse products, more than halved QoQ to $70.3b, narrowing the market-share lead of CSOP Asset Management over Hang Seng Investment Management.

Despite weaker overall flows, ETF launches accelerated, according to Jackie Choy, senior principal for passive investment strategy ratings at Morningstar.

Hong Kong welcomed 51 new ETFs in the first nine months of 2026, already exceeding the 47 launches recorded throughout 2025.

Around half were thematic ETFs, predominantly focused on AI and technology, whilst many were launched by providers backed by mainland China ETF firms.