The Securities and Futures Commission (SFC) expressed support for the initiatives highlighted in the Chief Executive's Policy Address aimed at strengthening Hong Kong's position as a leading international financial center (IFC).

SFC Chairman Tim Lui endorsed the proposed measures, which are designed to make the city a more attractive hub for fundraising, investment, and wealth management.

Kelvin Wong Tin-yau will take over as SFC Chairman on October 20, 2024. He will replace Lui, who has served in the role for six years, as reported by Finance Magnates.

Expanding Hong Kong’s Global Presence

The initiatives focus on enhancing Hong Kong's role as a gateway to Mainland China, improving market access, and developing the city's offshore renminbi (RMB) business through enhanced RMB fixed income market infrastructure and the creation of more RMB-denominated investment products.

Key strategies also include attracting major enterprises to list in Hong Kong, expanding the city's international presence, particularly in the Middle East and Southeast Asia, and improving market efficiency through optimized listing procedures and reduced transaction costs.

The SFC will also support efforts to build a Fintech innovation ecosystem and strengthen the regulation of virtual asset trading.

“We fully support the measures outlined by the Chief Executive to enhance the city’s appeal as a preferred hub for fund-raising, investment as well as asset and wealth management,” said Lui, the SFC’s Chairman.

“The expansion of the offshore RMB bond markets in Hong Kong, coupled with the development of a commodity trading ecosystem and a gold market, would further enhance the status of Hong Kong as an international fixed income, currencies and commodities hub,” he continued.

Collaboration Supports Wealth Management

Further collaboration with sovereign funds in Belt and Road regions, the launch of exchange-traded funds tracking Hong Kong indices in the Middle East, expanded tax concessions for funds and family offices, and the adoption of ISSB Standards will help solidify Hong Kong’s role as a global asset and wealth management hub.

The SFC will work closely with the Hong Kong government and other key stakeholders to ensure these initiatives are implemented.