Bank of New York Mellon highlights mutual recognition of ETPs between Hong Kong and China as pivotal to industry growth in Asia.

BNY Managing Director Rex Wong told The Asset mutual recognition could simplify things for ETF sponsors in the region while driving product innovation.

Currently, China, Hong Kong and Japan combine for about 80 cents of every $1 in Asian ETFs.

Last month, it was reported that Chinese regulators are mulling plans to permit cross-market investing between Shanghai and Hong Kong. A-shares, which trade in Shanghai and Shenzhen, have historically traded at premiums to H-shares, stocks traded in Hong Kong. [A-Shares ETFs Could Benefit From Cross-Market Plans]

ETF Trends editorial team contributed to this post. Tom Lydon’s clients owns shares of SPY and EFA.