Diversified engines underpin high-quality growth to bolster global standing of Hong Kong capital markets: SFC Annual Report

On June 24, 2026, the Securities and Futures Commission ("SFC") released its Annual Report 2025-26, stating that Hong Kong’s capital markets made remarkable strides across multiple asset classes over the past year, reinforcing the city’s status as a leading international financial centre.

SFC Leadership and Strategic Mandate

SFC Chairman Dr Kelvin Wong and CEO Ms Julia Leung emphasized the Commission’s commitment to fulfilling its dual mandate as market guardian and facilitator, fostering resilience, responsible innovation, and entrenching Hong Kong’s position as the vital financial gateway bridging the Mainland and the world.

Asset and Wealth Management Performance

On the asset and wealth management front, SFC-authorised ETFs and leveraged and inverse ("L&I") products saw average daily turnover surge 50.6% year-on-year to $38.1 billion, while total market capitalisation grew 25.2% to $651.2 billion over the year ending March 2026, with single-stock L&I products’ market capitalisation soaring 60 times. Additionally, Hong Kong-domiciled funds’ assets under management ("AUM") jumped 19.4% to $2.3 trillion, driven by strong net inflows.

Digital Asset Ecosystem Expansion

The digital asset ecosystem expanded through innovative products, with 13 SFC-authorised retail products’ AUM gaining nearly six times year-on-year to $10.8 billion as of March, and the total market capitalisation of 11 virtual asset ("VA") spot ETFs growing by 90% since debut in 2024. The 12 licensed VA trading platforms saw turnover surge 125% over the past year, while the SFC works with the Government to complete legislation for four new regulatory regimes – VA dealing, custody, advisory and management.

Equity Market and Connectivity

In the equity market, post-IPO financing grew 18% year-on-year to $259 billion as of March, alongside a 272% surge in IPO funds raised to $379 billion. Secondary market liquidity improved with average daily turnover rising 54% to $258 billion, trading spreads narrowing by 38%, and order execution time improving by 26%. Stock Connect remained a strong driver, with southbound daily turnover jumping 84% year-on-year to $124.1 billion, accounting for 24% of Hong Kong’s market turnover, while northbound cumulative inflows totalled RMB1.47 trillion.

Regulatory Initiatives and Investor Protection

Additional highlights include new-economy listings gaining traction with the launch of Technology Enterprises Channel, as funds raised by new listings of specialist technology and biotech companies surged 660% year-on-year to over $42 billion last year, alongside thematic inspections of selected sponsors in early 2026. Swap Connect registered more active investor participation and record monthly turnover (RMB821 billion in March 2026), with Over RMB11.6 trillion in renminbi interest rate swap transactions executed as of March. In a landmark move, the SFC secured the first auditor compensation over false financial statements in April 2026, agreeing to set aside $1 billion for minority shareholders, while expanding anti-scam publicity and launching an official Rednote account this April with over 20,000 followers.

Report Availability and Definitions

The Annual Report is available on the SFC website and social media pages. Notes clarify that the report covers the financial year from April 2025 to March 2026, and unless otherwise specified, figures are in Hong Kong dollars and as of end-March 2026 or for the financial year ending 31 March 2026.