The Hong Kong Securities and Futures Commission's Annual Report 2025-26 says Hong Kong's capital markets expanded across asset management, digital assets and equities in the year to March 2026. The report points to higher ETF and local fund activity, rapid growth in tokenised products and licensed virtual asset trading, and a sharp rise in IPO fundraising alongside stronger secondary-market liquidity and deeper Mainland connectivity. SFC-authorised ETFs and leveraged and inverse products recorded average daily turnover of HKD 38.1 billion, up 50.6% year on year, while market capitalisation rose 25.2% to HKD 651.2 billion. Hong Kong-domiciled funds' assets under management increased 19.4% to HKD 2.3 trillion. In digital assets, the assets under management of 13 SFC-authorised retail tokenised products rose nearly sixfold to HKD 10.8 billion, the total market capitalisation of 11 virtual asset spot ETFs increased 90% since their 2024 debut, and turnover at 12 licensed virtual asset trading platforms rose 125%. In equities, IPO funds raised jumped 272% to HKD 379 billion and post-IPO financing increased 18% to HKD 259 billion. Average daily turnover in the Hong Kong market reached a record HKD 258 billion, while the first phase of minimum spread reduction narrowed trading spreads by 38% and improved order execution time by 26% for affected stocks. Southbound Stock Connect turnover rose 84% to HKD 124.1 billion and accounted for 24% of Hong Kong market turnover, while cumulative northbound inflows to Mainland stocks since launch reached RMB 1.47 trillion. The report says the SFC is working with the Government to complete legislation for four new virtual asset regulatory regimes covering dealing, custody, advisory and management. It also says thematic inspections of selected sponsors are under way after issues of potential misconduct were flagged in early 2026.

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