The Hong Kong Securities and Futures Commission (SFC) published its Quarterly Report, pointing to a strong finish to 2025 for Hong Kong’s capital markets driven by strategic innovation across listings and digital assets. The report also flags gatekeeping concerns in the IPO process, with the SFC reviewing IPO sponsor submissions following a January circular focused on deficiencies in listing documents and sponsor misconduct, and planning thematic inspections of sponsors. Hong Kong raised over HKD 280 billion in IPOs in 2025, supported by the Technology Enterprises Channel launched in May 2025, which received 119 applications from pre-profit biotech and specialist technology firms up to December; 10 IPOs from these sectors raised over HKD 9 billion in the last quarter, up 800% year on year. In digital assets, SFC-authorised tokenised retail money market funds reached HKD 8.66 billion in assets under management as of December, up 14% from the prior quarter, while 11 virtual asset spot ETFs were listed with total market capitalisation over HKD 5.4 billion, up 142% since launch. SFC-authorised ETFs and leveraged and inverse products rose 33.7% year on year to HKD 618.7 billion in market capitalisation, with net inflows of HKD 9.2 billion in the last quarter and a 14% share of market turnover; Hong Kong-domiciled funds recorded net inflows of HKD 356.7 billion in 2025 and assets under management of HKD 2.28 trillion as of December. Other highlights include average daily southbound Stock Connect trading of HKD 121.1 billion in 2025, 9,637 licence applications received in 2025, and the first custodial sentence secured against an unlicensed finfluencer for paid investment advice on social media. The SFC is reviewing sponsor submissions required by its January circular and will commence thematic inspections of IPO sponsors in the near term.

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