Hong Kong’s capital markets showed significant progress in connectivity, innovation, and diversification during July-September 2025, according to the SFC's report. Global connections strengthened, market innovation in virtual assets advanced, and new product launches boosted market capitalization. The report highlights strong performance in IPOs, ETFs, and MMFs, along with regulatory efforts to maintain Hong Kong's global financial center status.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On December 17, 2025, Hong Kong’s capital markets demonstrated notable progress in market connectivity and financial innovation, as highlighted in the Securities and Futures Commission’s ("SFC") July-September 2025 Quarterly Report.
The city has bolstered its role as a super-connector by establishing deeper connections with global and Mainland markets, signing a total of six memoranda of understanding to reinforce asset management ties.
The Swap Connect, a Mainland-Hong Kong derivatives market connect scheme, recorded a 56% increase in trading volume year-on-year ("YoY") as of November, with aggregate transactions exceeding RMB9.3 trillion since its 2023 launch.
To foster market innovation, the SFC is collaborating with the Hong Kong Special Administrative Region ("HKSAR") Government to finalize conclusions on virtual asset ("VA") regimes.
SFC-authorised VA spot exchange-traded funds ("ETFs") saw a 33% YoY increase in market capitalisation to $5.47 billion as of end-November, while the number of authorised ETFs rose to 11. Additionally, tokenised retail money market funds ("MMFs") recorded a 557% increase in total assets under management ("AUM") to $5.48 billion since the launch of the first such MMF this year.
To solidify Hong Kong’s status as an offshore renminbi hub, the SFC and Hong Kong Monetary Authority ("HKMA") jointly issued a roadmap to position the city as a global fixed income and currency hub.
Ms Julia Leung, the SFC’s Chief Executive Officer, noted that Hong Kong’s capital markets achieved steady and diversified growth despite global headwinds, underlining the need for robust regulatory frameworks and investor protection.
Other notable highlights of the Quarterly Report include:
• The 24 initial public offerings ("IPOs") raised over $70 billion in the past quarter, a 70% increase from a year ago, solidifying Hong Kong’s lead in IPO funds raised globally.
• Hong Kong-domiciled funds attracted net inflows of $46.9 billion, with total AUM jumping 35.9% YoY to $2.27 trillion. SFC-authorised ETFs also grew strongly by 31.8% YoY to $653.5 billion.
• Licence applications under the Securities and Futures Ordinance rose 12% YoY to 2,799, while the number of SFC-licensed corporations and individuals grew 2.7% and 3.6% YoY to 3,379 and 46,457 respectively.
• The SFC issued a joint statement with the HKMA to caution investors against market volatility linked to stablecoins.
• The Stock Exchange of Hong Kong Limited ("SEHK") took its first-ever disciplinary action against two former company directors for non-cooperation in joint investigations with the SFC and SEHK.
• The SFC expanded its “Don’t be Sucker” anti-scam campaign to include university students and the elderly for public education.
The Quarterly Report is available on the SFC website.
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