New 3-year strategy from Hong Kong's SFC focuses on expanding virtual assets, tokenization, and sustainable finance.
The Securities and Futures Commission (SFC) of Hong Kong has published its strategic priorities for the next three years, from 2024 to 2026. The plan focuses on maintaining market resilience, enhancing competitiveness, leading financial innovation, and boosting institutional efficiency.
According to the SFC's report, the regulator aims to strengthen the city's financial markets in the face of "unprecedented challenges and opportunities" brought about by "shifting tides in the global markets, geopolitical tensions and technological advances."
A key priority is embracing innovation through new technologies and ESG. The SFC plans to advance the regulatory regime for virtual assets, support the tokenization of traditional assets, and drive the growth of ESG investing in Hong Kong and Asia. At the same time, it aims to stem risks like greenwashing.
To boost competitiveness, the SFC intends to deepen connections with mainland China's capital markets, expand overseas networks, and enhance Hong Kong's IPO fundraising. It also aims to introduce more China-related derivatives to increase Hong Kong's risk management capabilities.
SFC Chairman Tim Lui stated that the new strategic priorities will "fortify the core strengths of our capital markets, drive their sustainable development, and enhance their competitiveness."
The SFC's report outlines actions planned over the next three years to implement the strategy. These include utilizing technology to improve enforcement, monitoring emerging risks, educating investors, collaborating with mainland and overseas regulators, and streamlining internal processes.
According to Lui, "With this roadmap, the Commission is now better placed than ever to respond robustly and creatively to new regulatory challenges at home and abroad and to shape market developments."
