Shanghai and Shenzhen stock exchanges plan to list the first cross-border exchange traded fund focusing on companies in Hong Kong next year as investor appetite in mainland China broadens.

“Investors are looking for diversification from the Asia market and want to gain exposure to a basket of underlying Hong Kong stocks”, said Julia Leung, Hong Kong undersecretary for financial services and treasury. The Hong Kong stock exchange which lists Hong Kong, Chinese and international companies, will provide this, she added.