The Hong Kong Securities and Futures Commission (SFC) published its Annual Report 2024-25, pointing to an upturn in fund-raising and trading activity and setting out how recent regulatory work has supported market innovation and cross-border connectivity. The report highlights new milestones in tokenisation and virtual assets, including authorising three tokenised money market funds for retail access, permitting two virtual asset (VA) exchange-traded funds to engage in staking under its “ASPIRe” roadmap, and bringing the total number of licensed VA trading platforms to 11. The tokenised classes of the three money market funds had HKD 736 million in assets under management as of end-March, while six Hong Kong-listed VA spot ETFs recorded a 95% increase in market capitalisation and a 16% rise in daily turnover since their debut in April 2024. Connectivity indicators included cumulative southbound inflows through Stock Connect exceeding HKD 4.35 trillion as of May and southbound trading reaching 22.5% of Hong Kong market turnover, alongside new Middle East links in which two Hong Kong ETFs cross-listed on the Saudi Exchange were the largest ETFs there with market capitalisation of HKD 14.5 billion (USD 1.86 billion) as of May. Market development measures cited in the report included work with Hong Kong Exchanges and Clearing Limited to enhance listing application timeframes, with the SFC’s average response time for new listing applications within 20 business days, and a rise in IPO fund-raising to more than HKD 100 billion for the year. Other reported outcomes included ETF and leveraged and inverse products’ market capitalisation rising 35% year-on-year to HKD 520 billion, a 20% year-on-year increase in SFC-approved licence applications, a High Court market manipulation case resulting in the longest prison sentences under the Securities and Futures Ordinance, a shareholder compensation settlement involving Combest Holdings Limited, an expanded “Don’t Be Sucker” anti-scam campaign estimated to have generated more than 1.6 million views, and the SFC halving its total carbon emissions from its baseline to meet its interim target five years early.
Hong Kong Securities & Futures Commission 2025-06-25
Hong Kong Securities and Futures Commission annual report highlights retail tokenised money market funds, virtual asset ETF staking and faster listing application reviews
The Hong Kong Securities and Futures Commission's Annual Report 2024-25 highlights increased fund-raising and trading activity, with advancements in tokenisation and virtual assets, including authorising tokenised money market funds and virtual asset ETFs. Connectivity milestones include southbound inflows through Stock Connect and new Middle East links, while market development efforts have improved listing application timeframes and increased IPO fund-raising. Additional outcomes include a rise in market capitalisation for ETFs and leveraged products, more approved licence applications, and a successful anti-scam campaign.