The Hong Kong Securities and Futures Commission (SFC) published its Quarterly Report for April to June 2025, highlighting a sharp increase in IPO fundraising and securities trading activity alongside continued initiatives on listings, international market cooperation and virtual asset market development. The report also sets out recent investor protection work and enforcement activity. In the first seven months of 2025, Hong Kong recorded 51 IPOs and funds raised increased by over 610% year-on-year to HKD 128 billion, with more than 220 IPO applications in the pipeline as of end-July. Average daily turnover rose 85% to HKD 243.7 billion over the same period, while licence applications received increased 16% year-on-year in the second quarter; Hong Kong-domiciled funds grew 39% year-on-year in assets under management, the number of open-ended fund companies rose 56%, and average daily turnover of SFC-authorised exchange-traded funds jumped 135.5% in the quarter. Listing-related developments referenced include the Technology Enterprises Channel and a confidential filing option launched jointly with the Stock Exchange of Hong Kong in May, and international engagement included memoranda of understanding with the Central Bank of Ireland, the Ontario Securities Commission and the Financial Services Regulatory Authority of Abu Dhabi Global Market, as well as follow-on activity such as an actively managed ETF cross-listing in Hong Kong linked to an Irish master ETF. On virtual assets, SFC-authorised spot virtual asset ETFs increased from six to nine, and three spot virtual asset ETFs were approved to engage in staking with investor safeguards. As of end-July, 11 virtual asset trading platforms were SFC-licensed and 57 licensed corporations had been allowed to provide virtual asset dealing services; the SFC also commenced a joint consultation with the Financial Services and the Treasury Bureau on legislative proposals to regulate virtual asset dealers and custodians. Investor protection actions cited include a joint statement with the Hong Kong Monetary Authority cautioning against stablecoin-related speculation, guidance to licensed corporations on preventing phishing and unauthorised trading, IOSCO-aligned work on tackling online scams and unlawful finfluencers, and a thematic inspection on brokers’ compliance when using finfluencers and digital platforms, alongside a joint operation with the Independent Commission Against Corruption that resulted in arrests of two former listed-company executives for suspected share manipulation and corruption.

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