The Securities and Futures Commission (SFC) welcomes the initiatives in the Chief Executive’s Policy Address to further cement Hong Kong’s position as a globally competitive international financial centre (IFC).
In particular, as a Mainland China gateway, Hong Kong will benefit from the broad array of initiatives to deepen mutual market access including enhancement to Wealth Management Connect and to support its development as an offshore renminbi (RMB) business centre through improved RMB fixed income market infrastructure and more investment products denominated in RMB.
The city’s IFC status will also be buttressed by measures to attract leading enterprises to list in Hong Kong, expand and deepen its overseas networks including the Middle East and Southeast Asia, further optimise vetting procedures for listing applications, enhance market efficiency, and lower transaction cost. The SFC will also continue to assist in initiatives to establish a new Fintech innovation ecosystem and enhance the regulation of virtual asset trading.
In addition, collaboration with sovereign funds in Belt and Road regions, launching ETFs tracking Hong Kong stock indices in the Middle East, expanding tax concessions for funds and single family offices, and full adoption of the ISSB Standards will be key to bolstering Hong Kong’s position as a global asset and wealth management hub (Note 1).
“We fully support the measures outlined by the Chief Executive to enhance the city’s appeal as a preferred hub for fund-raising, investment as well as asset and wealth management,” said Mr Tim Lui, the SFC’s Chairman. “The expansion of the offshore RMB bond markets in Hong Kong, coupled with the development of a commodity trading ecosystem and a gold market, would further enhance the status of Hong Kong as an international fixed income, currencies and commodities hub.”
The SFC will continue to work with the HKSAR Government, relevant regulators, Hong Kong Exchanges and Clearing Limited, and other stakeholders to bring these initiatives to fruition.
Note:
The ISSB Standards refer to the inaugural IFRS Sustainability Disclosure Standards, IFRS S1 and IFRS S2, which were issued in June 2023 by the International Sustainability Standards Board (ISSB), a standard-setting board formed under the International Financial Reporting Standards Foundation (IFRS Foundation).
