On February 25, 2026, the SFC welcomes the Government's budget measures to bolster Hong Kong's global finance and national development roles, including key initiatives for the equity market and digital assets, and support for REITs and renminbi counters.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On February 25, 2026, the Securities and Futures Commission ("SFC") endorses the financial initiatives proposed by the Financial Secretary Mr. Paul Chan in the Government’s 2026-2027 budget. These initiatives are designed to further cement Hong Kong’s role as an international financial hub and bolster the nation’s financial innovation.
According to Dr. Kelvin Wong, the Chairman of the SFC, these measures lay out a clear pathway for financial sector development, infusing renewed growth momentum into Hong Kong and enhancing its global status. They will attract high-quality listings and global investment, while also boosting market efficiency.
The SFC will collaborate with the Hong Kong Exchanges and Clearing Limited ("HKEX") on several key initiatives, including the enhancement of weighted voting rights, support for biotechnology and technology company IPOs, and the transition to a T+1 settlement cycle.
The SFC plans to implement the uncertificated securities market regime by the end of 2026 and expand mutual market access with the Mainland. This includes the inclusion of real estate investment trusts ("REITs") and renminbi counters in Stock Connect and the launch of China Treasury bond futures contracts.
To future-proof the market and promote regulatory stability, the Financial Services and the Treasury Bureau and the SFC are proposing legislation for regulating virtual asset dealing and custodian services. This aims to complete Hong Kong’s regulatory framework for digital assets ("DA"), enhancing market liquidity, expanding product offerings, and establishing a Digital Asset Accelerator.
Ms. Julia Leung, CEO of the SFC, emphasizes the SFC’s commitment to working with stakeholders to drive financial innovation. The goal is to position Hong Kong as a leading global fixed income and currency ("FIC") hub and solidify the city’s status as a premier asset and wealth management center.
To secure Hong Kong’s FIC market infrastructure and facilitate the internationalization of the renminbi, the SFC is conducting a feasibility study for a regulated electronic trading platform. Additionally, the SFC welcomes the Government’s proposal to waive stamp duty on non-residential property transfers into REITs seeking to list in Hong Kong, thereby encouraging new listings.
To diversify fund distribution channels, the SFC will support HKEX in launching the next phase of the Integrated Fund Platform in 2026.
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