The 12-month licensing transition period for virtual asset trading platforms has ended, and 11 platforms are temporarily deemed to have been licensed. SFC Chief Executive Officer Leung Fung-yee said that further research will be conducted on whether all applications meet regulatory requirements. All institutions "deemed to have been licensed" will receive notifications one by one for on-site inspections and will be required to correct any non-compliance with regulations, otherwise the applicants will have to withdraw. It is expected that relevant institutions will be well prepared and, if they meet the qualifications, they will be licensed before the end of the year.
Leung Fung-yee also pointed out that in order to promote the development of the exchange-traded fund (ETF) ecosystem in Hong Kong, the SFC has approved the first batch of virtual asset spot ETFs in Asia for retail investment. The six ETFs began trading at the end of April and have maintained orderly trading to date. As of the end of May, the market value of these ETFs reached US$6 million, with an average daily trading volume of US$4 million, describing their performance as good. She emphasized that the SFC supports the Hong Kong Web5 ecosystem, but virtual assets are highly speculative, and reminded investors to pay attention to the sharp price fluctuations.
In addition, Leung Fung-yee, who just finished her trip to the Middle East, said that the Saudi Arabian Capital Market Authority and Saudi Stock Exchange Group attach great importance to the interconnection between Hong Kong and the local capital market, and will continue to actively promote the listing of Hong Kong stock ETFs in the Saudi market in the future. She also pointed out that many fund managers are willing to explore opportunities in Saudi Arabia, Dubai and Abu Dhabi. The SFC plans to sign memoranda with these places so that entry into bilateral markets will be carried out under the regulatory framework, and hopes to have more exchanges in the future.