Hong Kong Securities and Futures Commission Report: Deepening Interconnection and Flourishing Development of the Virtual Asset Ecosystem

According to the 2024-2025 annual report released by the Hong Kong Securities and Futures Commission, as of May, the cumulative net capital inflow of Hong Kong Stock Connect exceeded 4.35 trillion yuan, and the southbound trading volume accounted for 22.5% of the Hong Kong market turnover, reflecting the continuous deepening of the interconnection between Chinese mainland and Hong Kong. According to the report, Hong Kong has once again become one of the world’s top fundraising platforms, thanks to the reform measures introduced last year, as well as a rebound in IPO listings and secondary market trading. The tokenisation of virtual assets and securities has accelerated over the past year, driving Hong Kong towards the goal of becoming a financial hub of the future. Earlier this year, the SFC released the “ASPIRe” roadmap to promote the development of Hong Kong’s virtual asset ecosystem, and subsequently allowed two virtual asset exchange-traded funds (ETFs) to be pledged. At the same time, the total market capitalisation of the six Hong Kong-listed virtual asset spot ETFs has increased by 95% and the average daily turnover has also increased by 16% since their launch in April last year. On virtual asset trading platforms, the SFC has granted licences to a total of 11 institutions.