What Are the Latest Inclusion Criteria for Shanghai-Shenzhen Stock Connect ETFs and the Frequency of Their Regular Adjustments?

Under the revised Implementation Measures for the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect Programs, issued by the Shanghai and Shenzhen stock exchanges on June 14, 2024 and effective July 22, 2024, the inclusion and continued eligibility of Shanghai-Shenzhen Stock Connect ETFs are now governed by an entirely new set of quantitative standards. The most recent regular adjustment took effect on January 19, 2026, adding 98 ETFs and removing 7, lifting the total number of ETF Connect products from 273 to 364 — the largest single expansion since the program's launch in 2022. The NewTimeSpace review of this rule revision and the latest expansion shows that the Shanghai-Shenzhen Stock Connect ETF mechanism has formed a clear framework of "low-threshold entry + timely inclusion + two-way dynamic adjustment".

1. The Three "Hard Thresholds" for Inclusion as a Shanghai-Shenzhen Stock Connect ETF

1. Listing history and index requirements: The ETF must have been listed for at least 6 months, and the target index it tracks must have been published for at least 1 year. (Note: this is a general screening rule common to Connect-eligible ETFs, consistent with the latest expansion practice.)

2. Asset-size threshold: Average daily net asset value over the past 6 months of no less than RMB500 million. The revision slashed the original RMB1.5 billion threshold — the core measure of the 2024 expansion policy. Judging from the January 2026 results, multiple CSI A500 Index ETFs with assets exceeding RMB50 billion and popular ETFs with average daily turnover above RMB10 billion were smoothly included, fully validating the operability of the lowered threshold.

3. Constituents-compliance requirement: Stocks listed on the Shanghai and Shenzhen exchanges must account for no less than 60% of the tracked index's weight, and the ETF's holding of any single constituent security must not exceed 30%. This rule is designed to ensure the target ETF has sufficient "Connect attributes", preventing excessive concentration of constituents or too many non-eligible stocks from impairing offshore investors' trading continuity.

2. Adjustment Frequency and the Dynamic Removal Mechanism

1. Adjustment frequency: The Shanghai-Shenzhen Stock Connect ETF list is adjusted regularly every six months. The effective dates are usually set to the third Monday of January and July each year, aligned with the index-rebalancing rhythm to keep the market predictable.

2. Removal criteria: Beyond regular inclusion, the mechanism sets explicit removal red lines — an ETF whose average daily asset size over the past 6 months falls below RMB400 million, or that no longer meets the constituents-compliance requirements, will be removed from the Stock Connect list at the regular adjustment. In the January 2026 adjustment, 7 ETFs were removed on these grounds, embodying the principle of dynamic "in-and-out" management.

3. Effectiveness process: Before each adjustment, the exchanges publish the list in advance, giving the market ample preparation time. Taking the January 2026 adjustment as an example, HKEX announced the new list on January 9 and it took effect on January 19, leaving investors a sufficient rebalancing window.

3. The Latest Expansion Practice (Effective January 19, 2026)

This adjustment was the first large-scale test after the threshold reduction: a total of 98 ETFs were newly included (54 via the Shanghai Connect, 44 via the Shenzhen Connect) and 7 were removed, taking the total number of ETF Connect products from 273 to 364 — the largest single expansion since the program's launch in 2022. According to NewTimeSpace statistics, the expansion is notable not only for its scale but even more for its structural changes.

1. Product-structure changes: The newly included products show a clear trend toward diversification. Among broad-based products, 25 CSI A500 Index ETFs entered the Connect for the first time — the biggest highlight. In industry and thematic products, nearly 20 artificial-intelligence or chip-related ETFs and 17 cash-flow and dividend-strategy ETFs were included in batches, along with several aerospace and satellite-themed ETFs. NewTimeSpace analysis suggests this indicates that foreign allocation demand is extending from "broad-based beta" toward "sector and strategy alpha".

2. Fund-manager distribution: Products from 29 public fund managers were selected, led by China Asset Management (14), E Fund Management (10) and Fullgoal Fund Management (7) — a pronounced head-effect.

3. Market impact: In 2025 as a whole, northbound funds invested RMB816.582 billion in the mainland market through "ETF Connect", up more than 75% year on year and a record annual high. NewTimeSpace notes that after this expansion, the investable universe is further enriched and is likely to keep attracting incremental inflows.

In summary, the NewTimeSpace review shows that the current Shanghai-Shenzhen Stock Connect ETF mechanism, anchored by the low RMB500 million threshold and combined with semi-annual dynamic adjustments and explicit removal red lines, has formed a clear framework of "broad entry, strict supervision, two-way flow". The record January 2026 expansion not only validated the operability of the new rules but also marks the Connect ETF market's entry into a more refined and diversified new stage.

NewTimeSpace Disclaimer: All content herein is the original work of NewTimeSpace. Any reproduction, reprinting, or use of this content in any other manner must clearly indicate the source as "NewTimeSpace". NewTimeSpace and its authorized third-party information providers strive to ensure the accuracy and reliability of the data, but do not guarantee the absolute correctness thereof. This content is for reference only and does not constitute any investment advice. All transaction risks shall be borne by the user.