On February 26, 2025, the Securities and Futures Commission ("SFC") welcomed measures proposed by the Financial Secretary, Mr Paul Chan, in the government’s 2025-2026 budget to advance Hong Kong’s competitive edge as an international financial centre. The SFC is encouraged by the establishment of a dedicated technology enterprises channel by HKEX and will work closely with them to refine listing requirements and risk management strategies. The SFC also supports the development of Hong Kong as a fixed income and currency hub and continues to provide guidance on the virtual asset market.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On February 26, 2025, the Securities and Futures Commission ("SFC") expressed optimism regarding the proposals by the Financial Secretary, Mr. Paul Chan, in the 2025-2026 budget to strengthen Hong Kong's standing as an international financial hub. The SFC's Chairman, Dr. Kelvin Wong, noted that these measures would significantly enhance Hong Kong's securities and derivatives markets, further cementing its position as a leading asset and wealth management center.
The SFC is pleased to observe the proactive steps being taken by Hong Kong Exchanges and Clearing Limited ("HKEX") in establishing a dedicated 'technology enterprises channel' to facilitate the listing applications of specialist technology and biotechnology companies. The SFC will collaborate closely with HKEX to ensure a streamlined application process.
In collaboration with HKEX and other stakeholders, the SFC will undertake a comprehensive review of the listing regime. This includes the assessment of listing requirements, post-listing obligations, and the vetting process. Moreover, the SFC will study optimal thresholds for dual primary and secondary listings, and examine the broader market structure, potentially establishing a post-delisting over-the-counter trading mechanism.
To better address the risk management needs of investors, the SFC will soon consult the market on increasing position limits for key exchange-traded index derivatives.
The SFC is committed to leveraging Hong Kong's advantages in RMB bonds to establish the territory as a fixed income and currency hub. Collaborating with the Hong Kong Monetary Authority, a task force has been formed to develop a roadmap for the primary and secondary bond markets, as well as foreign exchange markets and infrastructural enhancements. A flagship forum is scheduled in the second half of 2025 to highlight Hong Kong's strengths in this area.
The SFC's Chief Executive Officer, Ms. Julia Leung, emphasized the importance of working with peer regulators and counterparts to enhance Hong Kong's fixed income and currency hub, foster the development of the virtual asset market, and strengthen connections with the Mainland and overseas markets.
The SFC welcomed the government's plan to release a second policy statement on harnessing traditional financial services and innovative technologies in the virtual asset sphere. Following the publication of a regulatory roadmap for Hong Kong's virtual asset market in mid-February, the SFC will continue to provide guidance to ensure a sustainable and orderly development of the fintech ecosystem.
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