The Hong Kong securities watchdog has launched a consultation group for licensed digital-asset trading platforms and will develop a road map covering market access, compliance requirements and the potential relaxation of certain rules in the near future.
Julia Leung Fung-yee, CEO of the Securities and Futures Commission of Hong Kong, made the remarks at a spring reception on Friday. The consultation group, chaired by Eric Yip Chee-hang, executive director for intermediaries at the SFC, held its first meeting on Friday morning.
“The goal is to enhance our position as a (digital asset) hub and improve international competitiveness and liquidity,” she said. “Of course, we place great emphasis on investor protection in the market.”
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Leung said the road map will cover various aspects including market access issues, their requirements, market entry safety periods, and existing compliance requirements.
She added that the SFC is considering areas in which regulations could be relaxed without compromising investor protection, including the possibility of expanding the range of products.
The financial regulator has granted licenses to nine virtual asset trading platforms, while nine more applications are under review.
Leung said the SFC discussed the plan with the Hong Kong Monetary Authority (HKMA) under Project Ensemble and determined that among real-world assets, money market funds show the highest potential for tokenization, enabling faster subscription and redemption processes.
She described the current phase as experimental, testing market appeal and technology, with several other tokenization applications under review, including retail products and money market funds, hoping that innovative finance can develop in Hong Kong.
She also announced plans to issue a circular allowing alternative funds to be listed on exchanges for public trading. “We will implement protective measures while maintaining a balanced approach to enable investors to diversify their asset allocation,” she said.
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These alternative funds invest in private equity, private debt, infrastructure equity or debt, and unlisted stocks.
At the same event, SFC Chairman Kelvin Wong Tin-yau said technology and innovation have become a crucial engine driving economic growth, with emerging sectors such as Web3 and artificial intelligence (AI) bringing revolutionary changes to capital markets.
He said that the SFC and Hong Kong Exchanges and Clearing will work together to enhance market liquidity and efficiency, improve the quality and governance of listed companies, and attract more leading enterprises to list in Hong Kong, maintaining the city’s competitiveness in global capital markets.
Contact the writer at tianyuanzhang@chinadailyhk.com
