During a panel discussion at the Hong Kong Association of Banks’ Annual Distinguished Speaker Luncheon, Hong Kong Securities and Futures Commission Chief Executive Officer Julia Leung discussed how artificial intelligence and renminbi internationalization could support Hong Kong’s market development. She indicated that the SFC is considering whether firms need further guidance on applying existing regulatory principles to agentic AI use cases, while emphasizing senior management accountability, sound governance, effective controls, transparency and protection of client interests. Any guidance would focus on regulatory outcomes rather than prescribe technology designs. Expected safeguards would include clear ownership and human oversight, controlled data access and defined use cases, testing before deployment, ongoing monitoring, operational resilience, recordkeeping and escalation when problems arise. Leung also described the SFC’s use of AI and data analytics to support faster license processing and earlier detection of misconduct and scams. On renminbi market development, Leung noted that Hong Kong is technically ready to include renminbi counters under southbound Stock Connect. A fixed income and currency trading platform is being developed to connect onshore and offshore renminbi markets, while eligible offshore renminbi fixed income collateral will be expanded to two additional clearing houses by the end of 2026. The SFC also supports additional renminbi foreign exchange and renminbi denominated gold futures and is exploring further Swap Connect enhancements, building on the launch of five-year China Government Bond futures in early August.

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