(Yicai Global) July 4 -- China's mainland and Hong Kong observe the first anniversary of the inclusion of exchange-traded funds in the Stock Connect with over USD50 billion of cumulative trading.

Hong Kong investors have poured CNY49.3 billion (USD6.8 billion) into mainland-listed ETFs and mainland-based investors have allocated HKD367 billion (USD46.9 billion) to Hong Kong-listed ETFs as of July 3, according to statistics released by the Hong Kong Stock Exchange.

ETFs were first added to the equity connectivity program last July. The number of products has increased to 103 from the first batch of 87, most of which are listed on the Shanghai Stock Exchange.

Trading has become busier as in June, northbound transactions tallied CNY13.6 billion, a boost of more than 33 times from last July. Southbound trades jumped more than 20 times to CNY85.4 billion.

The link is good news for Hong Kong equity holders. As an increasing number of mainland institutions join, Hong Kong stocks will have incremental liquidity, China Securities News reported today, citing Ding Chen, chief executive of Hong Kong-based CSOP Asset Management.

The Shanghai-Hong Kong Stock Connect was launched in 2014 and the range of products has widened to bonds and funds. The latest addition, the Swap Connect, took place in May to help offshore investors hedge against interest rate movements.

Editor: Emmi Laine