Hong Kong’s SFC sets agenda for 2024-2026: Tokenization and virtual asset innovation highlighted

The Hong Kong Securities and Futures Commission (SFC) recently announced its strategic priorities for 2024 to 2026. This document outlines a comprehensive strategy aimed at developing Hong Kong’s securities market, mitigating risks and strengthening investor protection in a dynamic environment. Global financial landscape.

Key Focus Areas

SFC’s strategic plan is based on four key areas:

Maintaining market resilience: SFC aims to strengthen Hong Kong’s financial market infrastructure to support sustainable growth. This includes addressing emerging risks, strengthening risk management among market intermediaries, and improving enforcement tools to detect and respond to misconduct.

Strengthening global competitiveness: Hong Kong will leverage its unique position as the gateway to mainland China with the goal of expanding its investor base, strengthening its IPO financing capacity and improving market liquidity. This approach is consistent with the SFC’s goal of strengthening Hong Kong’s role in RMB business and risk management, thereby contributing to national development and financial security.

Embracing innovation and tokenization: SFC plans to strengthen Hong Kong’s presence in virtual assets, tokenization and sustainable finance. Key initiatives include advancing the regulatory framework for virtual asset trading platforms and expanding tokenization of traditional goods to enhance investor protection.

Enhancing Institutional Resiliency and Efficiency: SFC is focused on strengthening operational efficiency, cyber resilience, and ensuring adequate financial resources to effectively meet regulatory responsibilities.

Chairman and CEO’s Perspective

SFC Chairman Tim Lui emphasized the Commission’s readiness to respond robustly to new regional and international regulatory challenges shaping market developments. CEO Julia Leung emphasized the SFC’s commitment to protecting investors from financial crime and achieving positive regulatory outcomes using comprehensive tools and resources.

technological innovation

An important part of SFC’s strategy is to embrace: technology Environmental, social and governance (ESG) initiatives. This includes fostering a responsible fintech ecosystem, preventing greenwashing, and nurturing sustainable finance talent.

conclusion

The SFC’s strategic priorities for 2024-2026 are a pivotal step in aligning Hong Kong’s financial sector with global trends and challenges. With its focus on resilience, competitiveness, innovation and efficiency, the SFC is well-positioned to strengthen Hong Kong’s position as a leading global financial hub and ensure market integrity and investor protection.

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