1. Cross-border ETF is an ETF fund whose index is located in a different country or region from the exchange where the fund is listed. Hong Kong stock ETFs are mainly QDII products issued by domestic fund companies in RMB to raise funds to invest in the Hong Kong market. The investment target is to track the major indexes in Hong Kong, and the index funds will be listed and traded on mainland exchanges. The first batch of Hong Kong stock ETFs are Huaxia Hang Seng ETF and E Fund Hang Seng China Enterprise ETF, both of which are based on the Hong Kong market, mainly focusing on their good investment value and can effectively supplement A shares in asset allocation; Compared with Europe, America and other countries, Hong Kong is also a mature market that mainland investors are relatively familiar with.

2. Compared with ordinary QDII funds, Hong Kong stock ETF has the characteristics of low rate and high efficiency. The management fee of ordinary QDII funds is generally 1.8% or 1.85%, and the custody fee is 0.30% or 0.35%, while the management fee and custody fee of E Fund's Hang Seng China Enterprise ETF are 0.6% and 0.20%. The rate of Huaxia Hang Seng ETF is lower, with the management fee and custody fee of 0.60% and 0. 15 respectively. In addition, the purchase and redemption time of Hong Kong stock ETF and ordinary QDII fund industry is also different. Ordinary QDII, the fund shares subscribed on T day can only be redeemed on T+3 day, but the Hong Kong stock ETF can be redeemed on T+2 day.

3. Previously, if mainland investors wanted to invest in Hong Kong stocks, they could only choose to open an account in Hong Kong or invest in QDII. However, because not everyone can open an account directly, and QDII has different fund managers' operating abilities, it is difficult for mainland investors to really share the feast of Hong Kong stocks. For investors, the Hong Kong stock ETF has opened up a channel for RMB funds to directly invest in the Hong Kong market, marking the official test of the "small Hong Kong stock through train" and providing a convenient channel for mainland investors to allocate assets globally. The first batch of cross-border ETFs including Huaxia Hang Seng ETF and E Fund Hang Seng China Enterprise ETF will be officially issued. This means that mainland investors have ushered in a new convenient channel to invest in Hong Kong, and the once-closed "Hong Kong stock through train" is becoming a reality. Huaxia Fund's Hong Kong Hang Seng Index ETF, E Fund's Hang Seng China Enterprise ETF and their linked funds all choose the representative index of the Hong Kong market as the tracking object. Among them, the investment target of Huaxia Hang Seng ETF and its linked funds is Hong Kong Hang Seng Index, which will be listed on Shenzhen Stock Exchange. E Fund's Hang Seng China Enterprise ETF and its linked fund listed on the Shanghai Stock Exchange are hang seng china enterprises index.