The Hong Kong Securities and Futures Commission has unveiled a short-, medium- and long-term action plan translating Hong Kong’s First Five-Year Plan and 2026 Policy Address into capital market initiatives. Following Chairman Dr Kelvin Wong’s earlier preview of the agenda, the plan targets the offshore renminbi ecosystem, mutual market access, asset and wealth management, market infrastructure, commodity trading, financial innovation and regulatory safeguards. Near-term measures include launching a renminbi trading counter for southbound Stock Connect, working toward REIT Connect, implementing T+1 settlement and the uncertificated securities market regime, and consulting further on listing requirements. The commission also plans new digital asset licensing regimes, an amended framework for funds and REIT transactions, a fixed income and currency trading platform, broader collateral and cross-margining arrangements, and support for Hong Kong’s gold clearing and settlement system. Longer-term initiatives include expanding renminbi-denominated products and hedging tools, strengthening Connect schemes, extending trading hours, developing fixed income and derivatives markets, and establishing frameworks for tokenized investment products. The commission will also use artificial intelligence and other technology in supervision, cybersecurity, anti-money laundering and digital asset surveillance while deepening coordination with Mainland and overseas regulators.

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