Hong Kong’s securities regulator has issued a fresh warning over an AI‑themed “quantum” high‑frequency trading product that it says targets the public without proper authorization.

The Securities and Futures Commission (SFC) on Friday cautioned investors about the scheme offered and marketed by Gold Fun Corporation Limited and Angel Guardian Alliance Technology Limited.

The regulator said the arrangement has not been authorized for public offering in Hong Kong and is suspected of breaching the Securities and Futures Ordinance (SFO).

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According to the SFC, marketing Marketing Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Read this Term materials describe the product as using “AI‑based quantum high‑frequency trading” to deliver estimated monthly yields of 3% to 8%. The materials also portray the strategy as carrying low or even no risk, a claim that the watchdog highlighted as a red flag.

Complaints over Withdrawals

The SFC said it has received reports from investors who faced difficulties withdrawing their money from the arrangement. Those complaints added to the regulator’s concerns about how the product operates in practice and the degree of liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term available to participants.

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In response, the SFC placed the arrangement and its related information on its Suspicious Investment Products Alert List with effect from 16 January 2026. The regulator said it will take all appropriate action if it finds any breach of securities law.

The SFC reiterated that collective investment schemes are generally sold through intermediaries licensed or registered with the commission, and unauthorized schemes are typically restricted to professional investors.

Last year, Hong Kong reported a new wave of phishing scams targeting investors in the region, with fraudsters posing as licensed brokers and sending deceptive text messages that direct victims to fake websites.

The city’s financial regulator warned the public to remain vigilant, advising investors not to click on any broker-related links received via SMS and to confirm the authenticity of communications through official channels.

Licensing and Cross-Border Marketing Rules

The latest warning pointed to the licensing obligations for firms promoting such products. Under its regulations, it is an offence to carry on, or hold oneself out as carrying on, a business in a regulated activity, including promoting interests in a collective investment scheme, without the required license.

The law also applies to entities that actively market services to the Hong Kong public from outside the territory if those services would amount to a regulated activity when provided in Hong Kong.